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The Grandson Tries to Exploit Granny for Personal Gain

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Financial Elder Abuse in America is at Crisis Proportions

by Dan J. Harkey

Summary

We have degraded our society to encourage entitlements and pursue unearned benefits and parasitic behavior, where criminal-based exploitation has little or no consequences.

Real Life Example:

In a real-life scenario, a grandson, the successor trustee of a family trust, requested a loan using his grandmother’s trust property. This raised suspicions of financial elder abuse, as the grandson intended to use the loan for personal gain rather than for the benefit of his grandmother.

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Article:

The Loan Request:

My client is a 94-year-old lady in a retirement home. Her husband has passed away. The property title is in a family trust with multiple beneficiaries, and the grandson acts as successor trustee. The estate will be settled upon Grandma’s death, and proceeds will be distributed to the numerous family beneficiaries.
The successor trustee, the grandson, wants to borrow money, using the free and clear single-family asset held in the family trust, as collateral to purchase a franchise business he intends to operate.

Borrower background:

The trust document authorizes the successor trustee (grandson) to convey title in a sale or borrow against the property as the single signer.

The free and clear property is valued at $800,000. The grandson desired to sell the property with the option of purchasing it back in 24 months for maximum cash-out to acquire a franchise business for himself as a 100% owner. His chosen method to obtain capital for his business franchise purchase was to quickly sell the property at a steep discount to get his greedy hands on the proceeds.

The ‘greedy’ grandson planned to borrow quick money and use the property as collateral while waiting for a sale and closing. He was referred to a hard money lender, a private lender typically providing short-term loans secured by real estate, for a short bridge loan. A hard money lender typically provides loans with higher interest rates and shorter terms, often used for real estate investments or in situations where traditional financing is unavailable.

The remaining family beneficiaries did not know that their future inheritance financial benefits would be misappropriated and permanently lost by one greedy relative. Like millions of others, the sociopathic grandson dwells in a self-absorbed dreamland of entitlement. I have met a few of these terrible people.

The competent lender responds.

The lender representing trust deed investors to originate this loan asked the procuring borrower’s loan broker if the elder had legal counsel to represent her interests. Would the borrower’s counsel provide a letter stating that Grandma understood this transaction’s material facts and ramifications? Would you happen to know if the transaction is an appropriate financial decision?

When asked if the elderly grandmother had legal counsel to represent her interests, the loan broker representing the grandson responded. Yes, a lawyer involved only represents the grandson. This response raised a major red flag, as it indicated potential collusion. The lawyer, who only represented the grandson, may have been willing to participate in defrauding the grandmother in the scheme to misappropriate unearned benefits away from the estate.

Any equity or proceeds from the sale of the property or loan proceeds should be reserved to pay for Grandma’s housing and continuing care.

Any prudent and knowledgeable real estate or mortgage broker representing private money trust deed investors will decline this loan request. The procuring borrower’s loan broker representing the greedy grandson will likely continue dialing for dollars to find another sucker lender dumb enough to arrange this transaction.

A procuring loan broker involved in this transaction is a bona fide scoundrel, a term used to describe a person who is genuinely and notoriously dishonest or dishonorable. The property equity has gone, the grandson takes money for personal use, other beneficiaries get screwed, and there is no money to care for grandma’s medical and living expenses. The parasitic scoundrel was waiting for Grandma to die to cover up this fraud. I call this effort ‘Felony Stupid.’

Yes, fraud, elder abuse, and negligent misrepresentation will surface when the beneficiaries left out of their rightful inheritance file a lawsuit against the grandson, mortgage brokers, the borrower’s lawyer, and investor(s) who purchased the trust deeds.

Any reasonable loan broker will run for the hills or hop on a bus, Gus, and drop off the Key Lee to avoid this transaction.

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Comments:

Financial elder abuse relates to the misappropriation of financial resources or assets. An abuser will take, misallocate, misappropriate, secretly obtain, or retain the real or personal property of an elderly or dependent adult for wrongful use, intending to defraud. This is a prevalent issue that requires immediate attention and action.

Third-party support staff members have daily contact and access to older adults and work to instill confidence and trust. Trusted individuals, like family members, paid caregivers, and nursing home staff members, commit most elder abuse cases. We read about these incidents daily. Misappropriating an older person’s financial interests, personal abuse, or intentional negligence is fraud. Known incidents should result in the perpetrator’s prosecution. Unfortunately, too many get away with the abuse because incidents go unreported.

As a real estate professional, your vigilance and awareness can significantly reduce financial elder abuse. Watch for signs of potential financial misappropriation or misrepresentations by any parties. Your feelings or voices are an acting guide to rightness or wrongness. Avoid any transactions that do not pass the conscience test. By being vigilant, you can play a crucial role in preventing such abuse and protecting vulnerable individuals.

The problem is that some people who are described as sociopaths or antisocial personality disorder are said to lack remorse or filter decisions through a conscience. They generally have no bad feelings about their actions that harm others. In the U.S., between 6.25 and 17.7 percent of adults are considered sociopaths, with an average of about 12%. 12% of approximately 260 million adults equals 31 million. The walk among us; ponder that!

All involved parties should be self-aware and vigilant at first notice if a person cannot care for or make decisions for themselves. The self-aware person is the one who notices through personal interaction that something is not right, will notify related parties, and take the necessary action to remedy the situation, whether temporary or permanent. This person is a hero and a star! Millions of people are these heroes and get no credit for their efforts.

Statistics suggest that only 1 in 44 financial abuse cases are reported, according to the National Adult Protective Services Association (NAPSA). Reporting is not just important; it’s crucial. NAPSA also notes that elderly victims of financial abuse are three times more likely to die and four times more likely to enter a nursing home without sufficient funds to care for themselves. By reporting, you can help prevent these dire consequences. Your actions can make a significant difference in the lives of vulnerable individuals.

Elders will be victims of financial crimes perpetrated against them for about 20% of $73 trillion, or $14,600,000,000,000 (trillion with a capital T and 12 zeros) assets that otherwise should go to future beneficiaries will be misappropriated or stolen. This staggering figure underscores the prevalence and urgency of the issue.

An estimate of the average baby boomer family wealth might be $2,000,000. The calculation means that there would be an estimated 20% of the wealth (14,600,000,000,000/2,000,000=7,300,000) separate incidents of elder financial abuse. This prevalence is alarming. For this estimate, let’s assume this is over ten years +/—730,000 separate elder abuse incidences per year, or 2,000 new ones every day. This awareness should prompt us to be more cautious and vigilant.

We have degraded our society to encourage entitlements and pursue unearned benefits and parasitic behavior, where criminal-based exploitation has little or no consequences. Any act of eroding a person’s lifetime earnings and financial stability is an unheard-of, terrible act. Any involvement by a fiduciary is a fraud.

Dan Harkey
Educator & Private Money Lending Consultant
[email protected] 949 533 8315
www.danharkey.com

The Interplay of Medical, Insurance, and Housing Financial Burdens

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By Rick Tobin

For many American homeowners, the bulk of their net worth is created by the long-term equity creation in their primary home. Later in life, the home wealth may be used as a way to pay for medical expenses for the homeowners or other family members whether or not they have sufficient amounts of medical or life insurance benefits.

Here in 2025, the big three monthly expenses for a high percentage of Americans are medical, insurance, and housing costs for both owners and renters. Today, these big three costs are all at or near all-time record highs. As a result, this combination of so many unaffordable expenses are financially draining for more people and it’s incredibly challenging to set aside cash reserves.

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The #1 cause of financial insolvency and bankruptcy filings here in the U.S. is directly related to unpaid medical bills. Some past surveys found that upwards of 80% of those Americans who were forced to file for bankruptcy due primarily to medical bills did, in fact, have medical insurance coverage in place at the time.

Sadly, the medical insurance coverage wasn’t high enough to cover the medical bills and/or the cash payment deductibles required to pay these bills weren’t achievable for many cash-strapped medical patients or their families.

Debt, Divorce, and Home Listings

The #2 cause of financial insolvency for Americans is due to divorce which, in turn, is most likely associated with financial stress between the once loving married couple. Oftentimes, the unpaid medical bills for one or both spouses were the major financial strain that led to both significant money pressures and the subsequent divorce, tragically.

Here are marriage, family, and divorce trends that I’ve compiled and shared over the years in articles and books as it partly relates to the most important family word that’s located right in the middle of the “single-family home” description:

Marriage and Divorce Trends

* The overall divorce rate in Orange County, CA is 72%; it’s 60% in California; and 50%+ nationwide.
* 41% of first marriages end in divorce, 60% of second marriages end in divorce, and 73% of third marriages end in divorce.
* The average length of a marriage in the U.S. that ends in divorce is 8 years from start to finish.
* Couples who spent more than $20,000 on their wedding were 3.5 times more likely to divorce than those who spent between $5,000 and $10,000, as per Emory University.
* Unmarried parents who live together are more likely to break up than married parents, per the Brookings Institute.
* Since 1990, divorce rates for people over 50 have doubled; they’ve tripled for people over 65.
* The U.S. now has the highest percentage of single-person households in the world and lowest marriage rates ever.
* U.S. fertility rates are the lowest ever, as fewer babies are born.
* USA is #1 for highest teen pregnancy rate in the industrialized world.
* Approximately 50% of children are born to unmarried women under 30 here in the USA.

These ongoing declining marriage and family trends will likely negatively impact future single-family home trends at some point in the future.

The divorce then inspires the homeowners to sell their family home to pay off both the unpaid medical bills and the rising legal costs associated with the ongoing divorce and unpaid collections related to the medical bills.

There are more than 1.2 million spouses involved in a divorce nationwide each year, as per sources like the CDC. Roughly 61% of all divorcees involved in a divorce end up listing their primary family home which, in turn, works out to more than 732,000 home listings per year that are as a result of divorce, per sources like Smart Agents.

Because there’s an epidemic of skyrocketing unpaid medical bills, financial insolvency, and subsequent divorces, there’s an increasing number of real estate agents who focus on divorce listings for homeowners who really have very few options but to sell their beloved family homes to pay off their expenses.

Medical Debt, Insufficient Insurance & Bankruptcy

An estimated 100 million Americans owe more than $220 billion dollars in medical bills despite the passage of the Affordable Care Act (ACA) back in 2010.

Approximately two-thirds, or a rather devilish 66.6% of Americans, who file Chapter 7 (complete liquidation) or Chapter 13 (bankruptcy payment plan over a few years) bankruptcy do so primarily due to unpaid medical bills, according to sources like SmartFinancial. As per this same medical bill and bankruptcy analysis, it’s equivalent to 550,000 people each year who file for medical bill-related bankruptcy protection even though 80% of these same indebted consumers had health insurance coverage at the time of their bankruptcy filing.

There are many more U.S. consumers who have unpaid medical bills who don’t file for bankruptcy protection than those people who do file for bankruptcy by a factor of more than 30-to-1.

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For example, upwards of 14 million people, which is about 6% of American adults, owe more than $1,000 in unpaid medical bills. Additionally, another three million Americans owe more than $10,000 in medical bills. If true, this works out to 17 million Americans with unpaid medical debt as compared to 550,000 Americans who file for bankruptcy each year due partly to medical debt at a ratio of more than 30-to-1.

These unpaid medical bills can later end up as collection accounts with more aggressive debt collectors who may report the debt on a consumer’s credit report. If so, the declining credit scores for certain consumers can make it very challenging to qualify for various types of consumer loans such as for credit cards, automobile, business, and mortgage loans.

Homeowners who have too much wealth to file for bankruptcy protection from unpaid medical bills do have several ways to pull cash out of their home or investment properties as I’ve shared in past articles such as How to Leverage Real Estate to Reduce Medical Debt.

Is insurance the new “mortgage” payment?

An increasing number of Americans may pay more for medical insurance each month than they do for housing expenses as either a homeowner or tenant. For others, they may pay more each month for homeowners or landlord insurance premiums than they do for mortgage or rent payments, especially in certain high-risk insurance regions like Florida and California.

Past articles from sources like the New York Times have described health care insurance payments as the “new mortgage” for many homeowners who are now struggling to pay their medical bills, insurance, and housing costs in addition to other regular bills like groceries.

In this linked New York Times article entitled How the High Cost of Medical Care is Affecting Americans (December 18, 2024 publishing date), two shockingly high medical bill examples in that article were as follows:

* A bill of over $40,000 for the 20 minutes it took for a doctor to stitch a cut.
* An ambulance ride of just 200 feet cost $3,421.

Younger married couples may pay more for monthly child care than they do for their monthly housing costs. If so, these rising costs for parents who want one or more children may not be financially practical for them, sadly. This is one major reason why U.S. fertility rates are now at all-time record lows.

In many high-risk flood, storm, or fire regions, the monthly homeowners or landlord insurance premiums might’ve increased somewhere between 25% and up to as high as 1,000% in recent years. As a result, the monthly insurance premiums may be much higher than the mortgage payment as I’ve shared in recent articles such as The Drying Disaster-Relief Insurance Pools.

The Housing and Insurance Umbrella Protection

The greatest form of wealth is good health and happiness. We should all focus, first and foremost, on being as healthy as possible. Otherwise, the outrageously expensive medical bills and rising out-of-pocket deductible cash payment requirements can be financially devastating.

The insurance, real estate, mortgage, and medical sectors are all tied together in many ways with money being the root link between them. We all need sufficient amounts of insurance protection to protect us from any potential known or unknown future risks for both our properties and our bodies.

If someone doesn’t have enough insurance protection in place for medical expenses and/or housing, then he or she might end up penniless and in bankruptcy court.

Again, you’re more likely than not to create the vast majority of your overall net worth from the equity gained in the ownership of your primary home. However, you’re also likely to end up broke by future unpaid medical bills that may or may not be paid 100% by your insurance carrier if you’re fortunate enough to have any medical insurance at the time of the medical billing.

It’s generally very wise to reach out to your most trusted insurance, real estate, and mortgage advisors to assist you with the most creative, affordable, and safest combinations of financial planning that can keep you and your family protected like a sturdy umbrella in an approaching dark and destructive rainstorm.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Why Planning Ahead Isn’t Optional

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By Kris Miller

My father was a meticulous man. A planner. A visionary. He had prepared for everything—or so he thought. He even anticipated that he would pass away before my mother. But life had a different plan. In their 80s, they were still vibrant world travelers, exploring countries hand-in-hand, collecting memories instead of things. Illness seemed distant, even impossible. Yet when it struck, it shook everything. Without long-term care insurance in place, my father was forced to dip into the savings he worked a lifetime to build. Yes, he had managed to Create Wealth, but that wealth was never intended to be spent this way. It was a hard and expensive lesson: over $15,000 a month just to care for my mother at home.

Get a FREE Financial Fitness Strategy Session with Kris Miller, LDA and Legacy Wealth Strategist. Sign up now For a FREE Financial Fitness Strategy Session with Kris Miller, LDA and Legacy Wealth Strategist

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That experience transformed my perspective—and my purpose. I’ve seen far too many people who dedicated their lives to hard work, yet watched everything slip away due to a lack of planning. Some lost it all in nursing homes. Others in market crashes. Some simply had the wrong paperwork. I’ve watched life savings evaporate not from irresponsibility, but from unawareness. This is why I speak with passion. This is why I now help others achieve Financial Growth with wisdom and foresight—so their life’s work doesn’t disappear, but instead becomes a foundation for freedom and security.

If you’re around age 50, now is the time to think about long-term care planning. It’s not too early, and certainly not too late. Long-term care insurance isn’t just about covering medical bills—it’s about preserving dignity, maintaining control, and protecting your lifestyle. It empowers you to Create income you will never outlive, by safeguarding your assets from unexpected medical events. It allows you to age in place with grace, surrounded by familiarity, not fear.

People often delay these decisions, thinking they’ll have time or that it won’t happen to them. But the truth is, planning isn’t for the sick—it’s for the wise. It’s about taking the time, while you’re healthy, to secure the lifestyle and independence you cherish. When you Create Wealth, it’s not just for show—it’s for sustaining your quality of life in every chapter, especially the most vulnerable ones.

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Imagine growing older with peace of mind, knowing that your savings are intact, your family isn’t burdened, and your care is guaranteed. That’s what I want for you—to experience Financial Growth not only in your career but also in your retirement. To live confidently, knowing you’ve structured a future that honors your work, your values, and your loved ones.

Don’t leave it to chance. Don’t wait until it’s too late. Start today. Create income you will never outlive. Create Wealth that lasts beyond you. Build a legacy not just of money—but of wisdom, preparation, and love.

Find me on linktr.ee/healthymoneyhappylife
Do you have questions? Email me at [email protected]
Phone (951) 926-4158

Financial Tax Strategies for Real Estate Investors & Realtors: Maximizing Deductions and Setting Up for Success

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Please review this important email. Thank you.

Are you looking for new opportunities to grow your wealth through real estate? Join our exclusive webinar tailored for savvy investors like you.

On this special and exclusive webinar, we will UNLOCK the secrets to financial success in your real estate career!

Join us for an insightful workshop as Tony Watson, a Tax Advisor from Robert Hall & Associates, will guide you through essential financial tax strategies to optimize your business expenses and maximize deductions.

In this seminar, you will learn:

– Effective budgeting techniques for your business-
How to distinguish between deductible and non-deductible expenses
– Informed decision-making for reinvesting your income
– The benefits of establishing an LLC or corporation
– Payroll management best practices- How to leverage financial tools for long-term success

Don’t miss this opportunity to gain valuable insights and enhance your financial acumen!

Webinar Details:
📅 Date: WEDNESDAY, JULY 9TH, 2025
⏰ Time: 1:00 PM PT
💻 Where: ONLINE

LEARN MORE:

Tony Watson personally manages clients with over $500 Million dollars in real estate holdings. He has spoken for hundreds of trade organizations throughout the State of California. Holding a federal license as an Enrolled Agent tax practitioner, Tony can advise, represent, and prepare tax returns for individuals, partnerships, corporations, and any other entity with tax-reporting requirements.

Aside from his full-time position at Robert Hall & Associates, Tony is an active real estate investor, entrepreneur and enjoys short and long term trading. With over a decade and a half of experience, Tony, along his team at Robert Hall & Associates, actively look for the newest and most up-to-date strategies to implement on client tax filings. They all operate with the same goal in mind: to help taxpayers keep more of their wealth and not overspend with the federal and state revenue agencies. Representatives from Robert Hall & Associates will be at Realty411’s Invest with Confidence Expo, learn more below.

Consolidated Investment Group Purchases Apartment Communities in Metropolitan Denver and Dallas

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The recent purchases add an additional 565 units to the
company’s growing portfolio

Denver, CO (June 2025) – Consolidated Investment Group (CIG), a leading-edge real estate investment company managing a large commercial portfolio, is proud to announce the recent purchase of apartment communities in the Denver and Dallas metro areas. The company now has more than 7,850 apartment units in its growing portfolio.

The Denver community is Aura Colliers Hill (which will be rebranded by CIG), located in Erie, CO, just 25 miles north of Denver. The sale price was not disclosed. The property is a three story, garden product and includes 329 units. It was completed in 2024 by Trinsic Residential Group, the seller.

“This acquisition reflects our belief in the long-term growth and desirability of Erie. It aligns well with our strategy of acquiring distinctive quality assets in markets with long-term upside,” said Logan Clark, CIG’s acquisition manager.

The Dallas community is The International at Valley Ranch, located in Irving, TX within the Dallas Fort Worth metroplex. The sales price was not disclosed. The property is four stories and includes 236 units with surface and garage parking. It was completed in 2024 by Criterion Development Partners, the seller.

“The International is a differentiated, high-quality product in a DFW submarket with compelling fundamentals, making it a strong addition to CIG’s portfolio,” said Clark.

CIG, a long-term holder, currently has ownership interests in more than 7,850 apartment units throughout the United States. A majority of these apartment communities are located in strong in-fill neighborhoods and are considered Class A properties. CIG is actively expanding its multifamily portfolio via development and acquisitions. Target markets include Denver, Dallas, Austin, Houston, Raleigh, Nashville and Phoenix.

More information regarding Consolidated Investment Group is available at www.ciginvest.com.

 

Are You Ready to Level Up Your Game in Real Estate and Life? Then Join Us…

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Learn all the strategies that top real estate investors use to keep more money, protect their assets, and improve their lives. We have important information from leading experts in the financial and real estate sectors ready to share their insight with our guests at Realty411’s Invest with Confidence Summit on Saturday, July 19th, 2025.

Joining us for a special day of education and insight starting at 9 AM are savvy real estate educators, such as Michael Ryan, a top Mortgage Broker. Michael is ready to provide timely as well as time-tested advice.

Michael Ryan,

Mortgage Broker

Learn More About Michael:

35 years primary focus financing on real estate secured property

25 years – build, subdivide, notes, bulk, rehab, reposition, etc

Education focused, armchair economist.

He will share a bullet-point presentation on:

  • Myths vs. Facts
  • The Build
  • Clarifying Investment Plans
  • Why Each Person / Plan is Different
  • The Need for Agnostic Advice