The statistics on elder abuse are alarming, with up to 16%* of older Australians estimated to be suffering elder abuse each year. The actual numbers are probably higher, as it is likely that not all cases are reported. This abuse often involves the misuse of an older person’s finances and assets by family members - often driven by ‘inheritance impatience’.
World Elder Abuse Awareness Day occurs on 15 June. This day reminds us to be aware and look for signs of elder abuse. But it also reminds us to review our own family arrangements.
Families can provide great support as we age. We might need to pass control and access to financial decisions to family members, who may or may not put our interests first. This article looks at some simple steps you can take to help minimise potential risks.
Choose your EPoA carefully
Give careful consideration on who you appoint as your enduring power of attorney (EPoA). Try to pick someone you think is most aligned with your views and life values, who has the time and willingness to undertake the role if needed. Someone acting as EPoA will need to:
- Act in your interests, not their own.
- Put themselves in your shoes to decide what decisions you would make.
- Keep your assets separate from their own.
- Keep accurate records of all actions taken and how they made decisions.
If you want to nominate more than one person to be your EPoA, think about how well they get along and whether they will be able to agree and make decisions.
Always seek legal advice to draw up your power or attorney documents. A good lawyer may cost a bit more, but it can be money well spent to avoid family conflicts and misuse of the powers.
Family discussion
Once you have made the decision on EPoA, have a family meeting. Take your family through what is important to you, why you have made the decisions you have and what you would like to see happen in the future.
This might help family understand the ‘whats and whys’ and minimise disputes in the future. It may also give the person who takes on the EPoA role some guidelines to direct their decisions.
Don’t leave your family on their own. If you have a financial planner, introduce your family to the planner so they can start to build a relationship (or find a planner you can start to work with). Afterall, your planner is someone you trust to help with financial decisions and who already knows what objectives you have for your financial future. Financial advice can provide valuable and objective support for an EPoA to ensure appropriate financial decisions are made.
If problems arise
If you or someone you know seems to be experiencing elder abuse reach out to the Elder Abuse Help Line on 1800 353 374.
If you want to know more about planning ahead for your older years, phone us today on 02 4325 0884 or email [email protected] to discuss.
* WHO Fact Sheet on elder abuse, dated June 2021 at https://www.who.int/news-room/fact-sheets/detail/elder-abuse
Sophie Doyle (AR#000470612) is an Aged Care Specialist at Morgans Financial Limited (Morgans AFSL 235410 / ABN49 010 669 726); with a passion for assisting people make informed financial decisions, as they navigate their way through retirement and aged care.
Disclaimer: While every care has been taken, Morgans Financial Limited makes no representations as to the accuracy or completeness of the contents. The information is of a general nature only and has been prepared without consideration of your individual objectives, financial situation or needs. Before making any decisions, you should consider the appropriateness for your personal investment objectives, financial situation or individual needs. We recommend you see a financial adviser, registered tax agent or legal adviser before making any decisions based on this information. Current at 1 April 2023.
