Financial planners play a crucial role in preventing elder abuse by providing comprehensive financial guidance and support to seniors. Through careful planning and management of their assets, financial planners help seniors maintain control over their finances, reducing the risk of exploitation and fraud. By implementing strategies to safeguard against scams and predatory practices, such as setting up secure banking arrangements and monitoring for suspicious transactions, financial planners create a protective barrier around their clients’ wealth. Additionally, they educate seniors about financial literacy and empower them to make informed decisions, enabling greater independence and autonomy. By fostering trust and open communication, financial planners establish strong relationships with their elderly clients, providing a reliable source of support and advocacy. Through proactive planning and ongoing guidance, financial planners serve as frontline defenders against elder abuse, ensuring the safety and security of vulnerable seniors.
What is elder abuse?
Elder abuse is any act within a relationship of trust which results in harm to an older person. It can be emotional, psychological, financial, physical or sexual abuse, or neglect.
Many people do not discuss their concerns with others because of feelings of shame, fear of retaliation, the involvement of family members or fear they will be institutionalised. Some people may not realise what they are experiencing is abuse, or feel that somehow it is their fault.
The statistics on elder abuse are alarming, with almost 15% 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’. Some of these include, but is not limited to:
- Denying someone the right to make their own decisions
- Pension skimming
- Selling someone’s belongings without permission
- Misusing an Enduring Power of Attorney by taking money or property improperly
- Forcing a person to change their will
- Denying someone access or control of their own funds
- Not allowing services to help someone
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, and
- 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 to navigate financial matters alone. Engage the expertise of a financial planner and introduce them to your family. This allows them to establish a rapport and understanding of your family dynamics. Your financial planner is a trusted ally who comprehends your financial goals and can offer valuable guidance. Their objective advice can greatly assist an enduring power of attorney (EPoA) in making informed and appropriate financial decisions.
If problems arise
If you or someone you know seems to be experiencing elder abuse reach out to the Elder Abuse Help Line on 1300 651 192 (Queensland only) or (07) 3867 2525 (rest of Australia).
If you want to know more about planning ahead for your older years, phone us today on 1300 855 849 to discuss or fill out the START YOUR JOURNEY FORM
Disclaimer: The information in this article is general and does not take into account your particular circumstances. We recommend specific tax or legal advice be sought before any action is taken and refer to the relevant Product Disclosure Statement before investing in any product. Current at 1 June 2023.
