In legal terms, financial elder abuse is defined as any act that causes financial loss to an older person and is carried out by someone they know and trust. At some point in their lives, people become old and are dependent on somebody for their care, welfare and financial handling.
In situations of incapability due to old age and loss of mental capacity, the primary area that gets affected foremost is their financial assets. In this blog, we will discuss the warning signs of elder abuse that an elder is being abused financially and the steps one should take to prevent it.
Sometimes, the cues for financial abuse are subtle or begin with minor variations in their daily schedule. So, if one or more terms that are stated below are applicable to your situation, you can consider this as flags that make diagnosing abuse easier:
Any unexplained expenditure from an elder’s account that they do not know or have not granted their permission for can be a potential cause for alarm. If they can’t give a reasonable explanation as to why the money transfer happened or the loan was taken, verifications are needed to confirm their well-being.
If any party whom the elder trusts prevents the latter from viewing their bank statements and balance, it can indicate restricting their financial freedom. If the elder’s right to access their passbooks, cards, passwords and emails is hindered, it can be a sign of financial isolation.
If the elder is asked to sign a legal document they did not request or do not have complete knowledge about its entire contents, it can form a serious ground of abuse. Pressuring and manipulating an elder to change a will or enduring power of attorney can lead to charges of explicit financial exploitation for personal gain.
It is defined as a deliberate behavioural pattern where an individual gradually gains the trust, dependence and confidence of an older person for the purpose of exerting and controlling the finances of the elder. The individual may coerce the elder to use their pension to pay for expenses of their own or invest in something on their behalf.
Under WA Public Trustee standards, bills for electricity, medication, rent or any other lifestyle services fall under the financial obligations of an EPA responsible for managing the elder’s assets. Failure to meet this requirement despite the elder having sufficient funds is considered a direct breach of duty by the individuals appointed as EPA.
Mortgaging, transferring ownership and refinancing the elder’s property without his permission are some of the most apparent indications of abuse. Keeping the proceeds of selling the elder’s property or using their property as security for your own benefit are signs that Civil Lawyers Perth suggest that you report to Legal Aid WA.
Under the Guardianship and Administration Act 1990 (WA), an Enduring Power of Attorney (EPA) can be appointed, which will allow the individual to oversee the elder’s assets if they lose the mental capacity to make decisions. An EPA must be 18 years of age and must know the full financial responsibilities associated with the role. If the EPA is under guardianship itself or has a history of criminal dishonesty, he will not be eligible for appointment. To further safeguard your finances, consider the following methods:
Appointing two or more individuals as EPA restricts the monopolising of financial power to a single person. Modifying bank conditions that require dual approvals and imposing restrictive limits for large transactions protects your assets from exploitation.
Under the Guardianship and Administration Act 1990 (WA), you can restrict the authority of your EPA by limiting what decisions the individual can make, which accounts they may access and which transactions they may perform. Under your discretion, you may even prohibit specific actions entirely, such as dealing with estate property or signing any land contracts on your behalf.
Banks in WA allow alerts to be sent to the elder regarding every transaction of funds if one opts for it. Setting withdrawal limits and setting up expense reviews with a financial advisor or an accountant at regular intervals helps detect unusual changes early.
If you suspect an elder is being unfairly treated by their own “trusted” people or EPA, then you can contact Legal Aid’s Elder Rights WA through a helpline. They will guide you to assess whether it is a civil case or a criminal one and collect the essential evidence. If forgery and theft of major assets are involved, you should report the abuse to the WA police.
If it’s a case where the person lacks the mental capacity and is subjected to neglect, you can lodge a complaint with the State Administrative Tribunal (SAT). They will determine the degree of abuse and take the necessary steps, keeping the elder’s best interest in mind.
It is essential to detect the signs of financial abuse early on to protect the older person from further harm and neglect. Whether you are a close family member, neighbour, concerned person or the victim yourself, consulting an Elder law lawyer Perth is the best course of action if you suspect any form of manipulation or deceitful conduct.