We have an older client whose son was writing checks and cashing them from the client's account. He is not a signer on the account. The signature looked forged so we refused to cash. It was reported to APS who investigated. The client said that there was no wrong doing. The bank has put a restriction on the account. Now the parent writes checks to the son to cash. The client appears of sound mind and is aware of the withdrawals.

The client is requesting to add the son to the account as a signer. What are our options for handling this account? Can we refuse to let client add the son? Can the account remain in a restricted status? We are not seeing anything in the regulations or guidance and are not sure how to proceed.

Abide by their wishes, tell them that you do not add authorized signers on personal accounts, or I would probably vote to cut them a check for the account balance.

Agree. If you believe however there is "undue influence", you might run the case by your county's elder abuse department.

you have a client you felt was a victim of elder abuse...

...reveiwed by APS, they investigated, no action
...client said their is no abuse or wrongdoing
...client now writing checks to son to cash
...client appears to be of sound mind
...client is aware of the withdrawals
...client wants to add son to account...

what makes you think otherwise? and honestly, if you are spending this much time, send them elsewhere

I couldn't agree with Happy more. You've done the due diligence. I remember when my dad wanted me on his accounts. I was going to be the executor of his estate and he wanted me able to act on his behalf when he couldn't. There were hospital stays and times when finances were far from his primary concern. That may be a motivating factor here. Unless you have any factual reason to believe there is abuse why do you not want to do as your customer asks?

I agree with all of the above, however, sometimes there is undue influence - where a person (usually a parent) acquiests to the "raiding of the account" because they are afraid of loosing the attention/help/affection of the child.

Usually thi child is added to the account, and withdraws money for their own use rather than the parent (look for an uptick in spending, or spending on themselves rather than the parent). In that case, I would recommend dilligence and seek guidance from elder abuse (or whatever the county name is) so you do not have a customer with no money and no support when the funds are drained. I had been at a bank where another sibling sued the bank as their sister wiped out close to a half million dollars from a "joint account" due to the sister being added because of "undue influence", and spending the funds on herself. They did recover the Mercedes though.

How old is this "older client"? Are they immobile? Are the transactions the son is completing a matter of convenience?

Is it just as far fetched that this is abuse that elder wants some spending $$$ and it's easier for kid to swing by and cash a check?