Elder financial abuse is a growing and deeply concerning issue, particularly as we face an unprecedented transfer of generational wealth from baby boomers to their children and grandchildren. Baby boomers are the wealthiest generation in history and Australians are expected to inherit an estimated $3.5 trillion over the next two decades, making the elderly increasingly vulnerable to exploitation.
What is Elder Financial Abuse?
Elder financial abuse is the misuse or misappropriation of an elderly person’s money, assets or property, and often by trusted individuals – such as family members, friends, attorneys or caregivers – with close family members being the most common perpetrators.
Elder financial abuse often begins or worsens when an elderly person starts to lose decision-making capacity. Cognitive decline makes them more vulnerable to manipulation, as their ability to manage finances, detect exploitation, or seek help is reduced. Increased dependence on others, often family and carers, can create opportunities for abuse, especially when the elderly person is isolated or unable to understand or report what is happening. Further, the rapid digitalisation of government and private services has made older, less technically savvy Australians even more reliant on family to manage their finances, increasing the risk of exploitation.
Elder financial abuse situations often start with an offer to help. Below are some warning signs that can assist in the early identification and intervention of financial abuse.
Unusual financial activity
- Unexplained or frequent withdrawals from bank accounts;
- Unexplained transfers or new joint accounts;
- Sudden changes in spending habits or account access;
- Missing valuables or possessions.
Changes to legal documents
- Abrupt or unexplained changes to a Will, Power of Attorney or other legal documents;
- The creation of new structures such as trusts;
- New legal documents that the elderly person cannot recall signing or understand.
Living conditions and person care
- Unpaid bills despite having adequate funds;
- Lack of food, medication or essential care;
- Sudden decline in personal hygiene or living standards.
Social or physical isolation
- An individual actively isolating the elderly person from family and friends, or stoking tensions;
- They appear withdrawn, isolated or have reduced contact with family and friends;
- Limited phone or communication access.
Behavioural changes
- Anxiety, confusion, or fear when discussing money;
- Reluctance to speak freely in the presence of certain individuals;
- Appearing unusually submissive or worried.
Presence of a controlling or over-involved individual
- The suspected abuser is overly protective, speaks on the elderly person’s behalf, or resists outside involvement;
- The elderly person appears overly dependent on the suspected abuser.
If you notice some of these signs, it is important to seek legal advice.
How we can help
Moores’ experienced elder financial abuse team can assist with early intervention, safeguarding assets and restoring the rights of your loved one.
Contact us
Please contact us for more detailed and tailored help.
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