Abuse of the Elderly.

It is said that "money is the root of all evil " and nowhere is that more true when someone with a lot of it is nearing the end of their life.  A surprising number of people die without making a will and their estate is distributed according to the letter of the law.  Often this involves extensive research to discover who is related to the deceased.

Many families are split by acrimonious feuds and have not been on speaking terms for years.  As their health deteriorates they rely on close friends and they are often advised to sign a " power of attorney  " to authorise that person to act on their behalf.  That is a very powerful document and it transfers the ability to spend the money of the subject entirely at that power of attorney holders discretion.  No rules apply.

Often, at the time of the death of a wealthy relative, the rest of the family discover that his or her fortune has been dissipated.  Usually they have no recourse if a power of attorney was in force but if money has been gifted it can be subjected to a court challenge on the grounds that the mind of the owner had deteriorated beyond the ability to make rational decisions.

Just such a case is proceeding through the Supreme Court of New South Wales.  A man claims that his step daughter used her influence with her dieing mother to have two million dollars transferred to her account.   This 91 year old man is suing his 58 year old step daughter for skimming the  estate of her mother who was his wife for 27 years.

The withdrawals are alleged to have been made while his wife was suffering a cognitive impairment following brain surgery and the daughter was managing the couples financial affairs.  In this case, the fate of that missing money will depend entirely on the decision reached by the court.  No power of attorney is involved in this money transfer.

It delivers a powerful warning to people not to wait until extreme old age to make a  will.   That is a simple document that details how your estate will be distributed after your death and that can either be accomplished with the help of a solicitor, or by buying a will form from a newsagent, filling it in and having two people witness your signature.

In todays world Dementia is often a scourge that accompanies old age and a person suffering Dementia can not legally make a will or confer power of attorney.  It is common for people to select someone they trust and have a power of attorney lodged with their solicitor naming that person to act if Dementia affects their decision making ability.  Usually, that arrangement has been discussed with the person so named.

Unfortunately, estate abuse is rife amongst family members where money is concerned and the elderly are usually the victims.  It is a very good idea to put your estate in order at an early stage and not take the risk that health may impair your ability to do so at a later life stage.  A little pre-planning will ensure your wishes are carried out without interference.