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Financial Elder Abuse

Protecting elders assets study: ethical management of older persons’ financial assets (PEAS, 2009-2011)

The fifth report from our research project into financial elder abuse is now available. For Love or Money: intergenerational management of older Victorians' assets (June 2011), explores financial elder abuse through the eyes of 15 professionals in the health, legal, financial, community and aged care sectors who work closely with older people and their families. It identifies how employees within these sectors can recognise and respond to financial elder abuse. You can download the report here.

The five reports from the PEAS study have made a significant contribution to raising awareness, education and professional development about financial elder abuse.

You can download reports and find out more about the research project here.

About financial elder abuse

Every year, State Trustees discovers instances where older people have been taken advantage of financially by those they trust most. In many cases, we are often asked to step in after much of the damage has already been done.

Financial elder abuse involves the taking or misusing of an older person’s money, property or assets by someone in a position of trust. It includes misusing an ATM or credit card; to taking money or property, forcing or forging an older person's signature, or persuading them to change their Will and contracts or power of attorney through deception or undue influence.

Today's older people are the richest in history. The first of the baby boomers turned 65 this year, so the proportion of elderly in the population will begin to increase dramatically. This generation will produce the biggest transfer of wealth between generations that the world has seen. Unfortunately, people in some families are not prepared to wait.

Surprisingly little is known about financial elder abuse so State Trustees commissioned Monash University to conduct a three year research project entitled: Protecting Elders Assets Study (PEAS): Ethical Management of Older Persons’ Financial Assets (2009-2011).

The five reports from the study have made a significant contribution to raising awareness, education and professional development about financial elder abuse.

Due to the hidden nature of the crime, it is difficult to get a sense of the numbers involved, but the research found that up to 5 per cent of Australians over 65 have experienced financial abuse.

Who is most likely at risk?

The research found that older women over the age of 80 are most at risk. Other characteristics of older people most vulnerable to abuse include:

  • Diminished capacity due to dementia and other related illnesses
  • Isolation and dependence on others
  • Reliance on others for translation, transaction and services relating to the management of their finances, particularly if they are of a culturally and linguistically diverse background

Who does it?

The research found that sons are the most likely perpetrators, followed by daughters, then others closest to the older person.

Overall, the study highlighted the distressing irony that older people do not believe it will happen to them, and that their own children are likely to be the most common perpetrators.

What can you do about it?

Older Victorians, and those that work with them, should be aware of the risks of financial elder abuse. Everyone should plan ahead and put mechanisms in place to protect themselves in the event that they lose their decision-making capacity. We offer the following tips to help minimise this risk:

For more information on how State Trustees can help you, please contact us on 03 9667 6466.

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