As a guardianship lawyer, I've seen first-hand the devastating effects of financial elder abuse on Australian seniors.
If you are a financial advisor, read this blog for signs that financial elder abuse may be happening to your clients, and what role you can play in protecting your clients.
Financial elder abuse is a serious issue that affects many older Australians every year. Elder abuse can take many forms, including financial exploitation, physical abuse, and emotional abuse.
As financial advisors, you are often in a prime (and sometimes ‘only’) position to be aware of the signs of elder abuse and to take action when you suspect that a client may be at risk.
The following are 5 signs that financial elder abuse may be happening:
Sudden changes in financial arrangements, such as the appointment of a new power of attorney or the transfer of assets to a new account.
Unexplained withdrawals from accounts or the use of an elderly person's funds without their knowledge or consent.
The appearance of new "friends" who are taking an interest in the elderly person's financial affairs, especially if they seem to be trying to isolate the person from their family and trusted advisors.
Changes in the elderly person's demeanour or behaviour, such as increased confusion or agitation, that may be caused by financial stress or exploitation.
Unexpected changes in the elderly person's financial situation, such as sudden debts or unpaid bills.
To help protect your clients from elder abuse, there are several steps you can take:
Stay in regular contact with your clients. This will help you to stay informed about their financial situation and to identify any changes that may be cause for concern.
Be aware of the signs of elder abuse. If you notice any unusual activity in your client's accounts or if you have concerns about the well-being of an elderly client, it's important to take action.
Work with other professionals. If you have concerns about a client, consider reaching out to other professionals, such as lawyers or social workers, for guidance on how to proceed.
Educate your clients about the dangers of elder abuse. Help your clients to develop strategies for protecting themselves, such as setting up a power of attorney (if they have capacity) or working with a trusted family member or friend.
By taking these steps, financial advisors can play a critical role in protecting their elderly clients from financial elder abuse. If you have any questions or would like to discuss how I can assist, please don't hesitate to contact me.