By Barbara Drury
April 30, 2008
Nest eggs might be the new target for unscrupulous family members and crooks, writes Barbara Drury.
Late last year the NSW Supreme Court ordered that a family home be returned to its 92-year-old owner. The frail elderly man's nephew and sole beneficiary had transferred the title of the property to his own name without his uncle's knowledge or permission. Needless to say, the nephew has since been written out of the old man's will.
You don't have to be old to be ripped off but older people are especially vulnerable to financial exploitation. They often own their own home and have significant savings and investments, while many also suffer from isolation, poor health, a loss of mental capacity and misplaced trust in family and strangers.
Financial abuse ranges from trusted family members bringing forward their inheritance by pressuring elderly relatives for cash or property, to criminal fraud by strangers who abuse their position of trust and authority to obtain property through deception.
Detective-Sergeant Rod Mills of the Victoria Police, who has a long-standing interest in the issues of elder abuse and fraud, says the biggest danger period for many people is when they retire and reinvest their superannuation.
Where some organised crime groups used to plan armed robberies, Mills says it's easier for criminals these days to target super. In cases of identity fraud, the crime may not be detected until people want to access their money.
Lillian Jeter, of the Elder Abuse Prevention Association, says abuse always starts with dependency and may involve undue influence, coercion, threats and intimidation from family members, carers or outsiders.
Typically, the abuser seeks an enduring power of attorney, title to the older person's property and a change in the will to ensure they are named as beneficiary. "I call it the three-for-one deal," Jeter says.
An enduring power of attorney gives another person the legal right to act on your behalf if you become incapacitated in some way and are unable to make your own decisions.
Statistics are hard to come by but a report on older people and the law released last September by the federal House of Representatives Legal and Constitutional Affairs Committee suggested that 3 to 7 per cent of people over 65 will experience abuse from someone they trust, with financial abuse the fastest growing and most common type of abuse.
The report on older people and the law made 48 recommendations, including uniform legislation on powers of attorney.......
Despite bi-partisan support, the Federal Government has yet to respond.
Unfortunately, due to loopholes in the law an enduring power of attorney is no guarantee against financial exploitation, as the Clare story at left illustrates.
DAUGHTER HELPED HERSELF TO MONEY
Jim and Anne Clare* received a call for help from Anne's 94-year-old mother late last year. Betty was worried that her younger daughter and caregiver had helped herself to money from her bank account.
The Clares drove Betty to her bank where her fears were confirmed, and worse. Over 10 years, her daughter Felicity had taken more than $250,000 in cash and financial benefits.
Fifteen years ago Betty sold her house and paid to build a granny flat adjoining Felicity's home. Years later, Betty granted an enduring power of attorney to Felicity, who also became co-signatory to her bank account.
After trawling through Betty's bank statements, the Clares discovered that Felicity had made regular unexplained withdrawals of between $500 and $3000 plus a lump sum of almost $20,000 from the proceeds of Betty's super. Felicity had also claimed carer's payment and rental assistance through Centrelink, despite charging Betty rent for her flat and insisting Betty pay for home help from her pension.
"We had to remove [Betty] because of the intimidation and bullying," Jim says.
Betty is now settled in a hostel and seeing her old friends. The hostel waived the bond because of Betty's financial hardship. * All names have been changed.
Abridged
SOURCE: TheAge
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