practical living
finAnciAL eXpLoiTATion –
THe mosT common eLder AbUse
A recent study found that financial abuse
is the most common form reported. This
is a fact to which State Trustees can attest,
having handled more than 120 cases
involving financial elder abuse in the past
month alone.
These cases generally include incidents
in which a person in a position of trust,
such as a son or daughter, takes or misuses
their parent’s money, property or assets for
their own personal gain.
From grandchildren manipulating their
grandparents to prevent the sale of their
property, to children high-jacking their
elderly parents’ pensions and life savings to
pay for their own living expenses, the lengths
abusers go to in exploiting the vulnerability of
older people is extraordinary.
A combination of shame, fear of not
being believed, and some form of reliance
on the perpetrator makes that this type of
abuse chronically under-reported.
There are a number of circumstances
that may increase the likelihood an
individual will fall victim to financial elder
abuse. These include:
• Diminished capacity due to dementia and
related illnesses
• Isolation and dependence on others
• Reliance on others for transactions and
services relating to the management of
finances, particularly if they are from a
non-English speaking background
• Women over the age of 80, although in
some cases as young as 65
There are also a number of early warning
signs that someone may be suffering from
financial elder abuse. These include:
• Suspicious changes in wills or powers
of attorney
• Lack of money for day-to-day items
• Financial activity the person could not have
carried out alone; for example, withdrawals
from your bedridden mother’s bank account
• Large and unexplained sums of money
missing from a bank account
• Bills not being paid
• Unusual purchases
WHAT cAn be done To prevenT
finAnciAL eLder AbUse?
State Trustees strongly believes prevention
and early intervention are the keys to
making a difference for Australia’s ageing
population. We urge anyone who thinks
they could be at risk of elder abuse now or
in the future to take a hands-on approach.
Recommended steps for prevention:
• Appoint an independent attorney for
financial matters or, if appointing family
members, appoint more than one attorney
for financial matters
• Get independent advice
• Keep your will up to date
• Make loans legally binding
• Formally document living arrangements.
An enduring power of attorney (financial)
lets someone else help you with your
financial and legal decisions. Your financial
attorney should be someone who can
be impartial and trustworthy, is able to
manage any possible conflict and has the
time to carry out your wishes accordingly.
Although a friend or family member
might like to help out, it may be
simpler and less stressful to appoint a
professional organisation. The most
important thing is your confidence that
the person or organisation you choose
will act in accordance with your wishes
and best interests.
cAse sTUdy: HoW A finAnciAL
ATTorney cAn HeLp
Joyce (not her real name) was aged in
her 70s and had built a large investment
portfolio worth more than $1 million
dollars with her late husband. She had
reached the point where she had trouble
managing her financial affairs and her
son suggested she nominate him as her
financial attorney.
Believing this was a good idea, Joyce
was happy to appoint her son. Her son
convinced Joyce that she would be unable
to have a pension if the house remained in
her name, and persuaded her to sign the
property over to him.
Unfortunately, soon after she did this,
her son’s marriage broke down. With
the house now in her son’s name, his
wife was entitled to half of its value. As
a result, the property was sold with the
proceeds being split evenly between both
parties. Joyce was then forced to move
into care, as she no longer had a home
to live in.
Joyce decided to appoint State
Trustees as her new financial attorney,
revoking the appointment of her son.
State Trustees was then able to step
in to protect Joyce’s investments from
further depletion. Joyce’s remaining
assets were secured and negotiations
were commenced with Centrelink for
a pension.
WHere To geT HeLp
To help prevent financial elder abuse, all
those at risk should ensure they have an
updated will and enduring power of attorney
in place, using a professional organisation.
If you are the victim of financial elder
abuse or know of someone who is at
risk, contact the relevant organisation
in your state. You can see a listing on
myagedcare.gov.au n
sandy probert is a relationship manager at
state Trustees. go to statetrustees.com.au
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