When a trusted family member or caregiver misuses an aging loved one’s finances, the consequences can be devastating. Financial exploitation of vulnerable adults happens more often than most realize. Recognizing this, Maryland enacted the Statute Against Financial Exploitation (SAFE Act), which gives victims and their advocates powerful tools to recover what’s been taken and hold wrongdoers accountable.
What the SAFE Act Does
The SAFE Act strengthens protections for “vulnerable adults” – those who, because of age, illness, or disability, cannot fully protect their financial interests. Its key features include:
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Treble damages: Courts can award up to three times the amount taken, greatly increasing recovery.
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Attorney’s fees: Victims can recover legal costs in addition to the stolen funds.
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Lower evidentiary hurdles: The Act reduces the burden of proof for demonstrating financial exploitation, making it easier to hold wrongdoers accountable.
By expanding the remedies available and reducing procedural barriers, the SAFE Act changes the way courts assess cases and significantly increases the potential consequences for those who abuse positions of trust.
Real-World Impact: Early Court Decisions
The SAFE Act has been in effect since October 1, 2021, and because civil cases take time to move through the courts, recent court decisions are now beginning to show just how significantly outcomes can change:
- Case One (Charles County, MD):
A daughter, managing her mother’s finances due to the mother’s diminished capacity, withdrew nearly $75,000 from a joint account intended for convenience. She converted the funds for her own use. Applying the SAFE Act, the court awarded a total judgement of $472,274.59 ($222,000 in compensatory damages, $150,000 in additional damages, and $100,000 in punitive damages). Under prior law, the mother would have been limited to receiving only the $222,000 as damages. - Case Two (Prince George’s County, MD):
A guardian of a ward suffering from significant dementia misappropriated $397,108. Under the SAFE Act, the court awarded $1,443,898.16, including treble damages, attorney’s fees, and interest. Without the Act, the maximum recovery would have been just $476,529 (the amount stolen plus interest).
These cases illustrate how the SAFE Act not only increases recoveries but also sends a clear message that financial exploitation will not be tolerated. Even modest misappropriations can result in substantial judgments, emphasizing the law’s deterrent effect.
Implications for Families and Fiduciaries
Financial exploitation often occurs within families or caregiving relationships, where access and trust make oversight difficult. The SAFE Act changes both the risk landscape and the approach families and fiduciaries must take:
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Families now have clearer avenues to recover assets taken from elderly or incapacitated relatives.
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Caregivers, trustees, and agents under powers of attorney must exercise heightened vigilance, as penalties for misuse are significantly steeper.
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Estate and trust planning should incorporate protections for vulnerable adults, including careful designation of fiduciaries and mechanisms to monitor financial activity.
Practical Considerations
While the SAFE Act opens the door to substantial recoveries, successful outcomes require careful documentation, early action, and strategic decision-making. Reviewing accounts, documenting relationships and transactions, and understanding how damages and attorney’s fees may be calculated can make the difference between partial and full recovery.
The early court decisions demonstrate that the SAFE Act is reshaping the response to elder financial abuse in Maryland. Families who act proactively through oversight, planning, and timely legal action can better protect both their loved ones and their estates.
Contact Us
For more information, please contact the Davis, Agnor, Rapaport & Skalny attorney with whom you typically work, or reach out to a member of our Estate, Trust & Guardianship Practice Group.