Ahead of World Elder Abuse Awareness Day, on 14 June 2024, we come together with our friends, family and colleagues for important discussions around safeguarding older Australians.

Elderly people are often the most vulnerable and at risk of being targeted for abuse, as they are viewed as easier to take advantage of – sometimes with little ability to protect themselves.

With such a large part of the Australian population expected to be in the elder category soon, it makes addressing elder abuse even more important.

What is Elder Abuse?

Elder abuse as described by the World Health Organisation is ‘a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person’. 

Australian Institute of Family Studies’s research into elder abuse has found that 1 in 6 older Australians are experiencing some form of abuse, and that elder abuse can take the form of:

• psychological abuse (11.7%)
• neglect (2.9%)
• financial abuse (2.1%)
• physical abuse (1.8%)
• sexual abuse (1%).

People with poor physical or psychological health and higher levels of social isolation are more likely to experience elder abuse. An elder person’s lack of dignity and autonomy can also create fear and may inhibit a person’s ability to make good choices.

Financial elder abuse — a growing concern for older Australians

Financial abuse in particular, impacts around six percent of older Australians. Financial abuse may be intentionally or unintentionally and involve the illegal, improper use or mismanagement of a person’s money, property or financial resources.

The abuse can be where a relative or friend is syphoning money from the elder person, suggesting they transfer assets such as a house into their name or even forcing them to change their Will to benefit the abuser.

With the increase in illnesses such as Dementia and Alzheimer’s, abuse is sadly becoming more frequent.

Some other examples of financial elder abuse include:

• threatening, coercing, putting undue pressure of forcing an older person into selling or handing over an asset or property, signing a document, Wills or Enduring Powers of Attorney;

• an attorney, under an Enduring Power of Attorney, abusing or neglecting an older person’s finances or stealing goods from an older person such as using their banking and financial documents without authorisation;

• generally managing the finances of a competent older person without permission or incurring bills for which an older person is responsible;

• appropriating the proceeds of the sale of an older person’s home with the promise of providing future accommodation or care and then not providing it; and

• pressuring an older person to relinquish an anticipated inheritance or gift or loan.

What steps can I take to protect this happening to me?

Fortunately, estate planning is one way in which elderly people can take action now to protect themselves and their assets. Measures can be put in place in an individual’s estate plan to safeguard their assets.

Below are some recommendations that people should consider when revisiting their estate plan.

Wills

Pressure or undue influence can be placed on older people to change their Wills which can lead to financial abuse.

To avoid undue influence with older clients, it is important that that an elder client is seen alone (spouse excepted) and not with a support person who could for example be a child with an agenda.

Time needs to be spent to ensure that they provide adequate instructions including details of their current family situation, former relationships, children from prior marriages and their assets, superannuation and other related assets such as family trusts for us to prepare a Will.

Obtaining a capacity assessment before the execution of the Will, will also be a good idea if an elderly person is starting to exhibit signs of cognitive decline. A Willmaker has to have the requisite testamentary capacity to provide adequate instructions and to know and understand what they preparing – otherwise, this may lead to others challenging the validity of the Will itself after they pass.

It is important to discuss with you solicitor on different ways to protect your assets and prevent them from falling into the wrong hands.

Enduring Power of Attorney

These documents give financial decisions to a trusted friend or family member but can be used to financial abuse the older person in some cases.

By having an Enduring Power of Attorney in place, you have appointed people you know and trust to take care of both your financial and personal/health matters whilst you are alive, even if you have lost capacity to make these decisions yourself.

Elderly people may consider having multiple attorneys to act, who can jointly make or execute financial decisions (to safeguard against any poor decision making from only one attorney).

It is important to note that people may change their power of attorney any time and revoke an earlier one (but again, only whilst they still have capacity).

If a loved one is susceptible to elder abuse on account of diminished capacity, consider acting quickly for them to appoint an attorney – even if it is someone independent to take on the role.

What if I suspect elder financial abuse is happening?

Seek legal advice immediately. Formalising your estate plan (whilst you are still able to) should not be delayed or taken lightly.

The sooner you seek help the easier it is to remedy the situation. Once assets are sold or spent, it is unlikely that they can be restored.

If you suspect that a loved one is experiencing financial abuse, please contact us to discuss some options to safeguard assets.

If you suspect elder abuse, we would also encourage you to call the free, anonymous and confidential Elder Abuse Hotline.