As we age, we rely more on those closest to us—family, friends, and trusted professionals—to help manage our affairs. But what happens when the very people we trust most are the ones who could put our financial well-being at risk?
It’s a sobering thought, but unfortunately, financial abuse is a growing concern for older Australians, and it’s more common than many of us realise. With World Elder Abuse Awareness Day on 15 June, there’s no better time to raise awareness of this vital issue and arm ourselves with the knowledge to stay safe.
According to the latest Elder Abuse Statistics in Queensland, financial abuse is the second-most common type of elder abuse, and alarmingly, nearly 12 per cent of these cases involve attorneys—those appointed to act on our behalf—misusing their powers.
But don’t let this put you off planning for the future! Having an enduring power of attorney (EPOA) is still one of the best ways to ensure your wishes are respected if you’re ever unable to make decisions yourself.
The key is to set it up thoughtfully, with safeguards to protect your interests. So, how can you reduce the risk of being financially abused by someone you trust?
The Queensland Public Trustee (QPT) has released a new, easy-to-follow guide with nine practical strategies for creating an enduring power of attorney that protects your money and peace of mind.
Let’s break down these expert tips and add a few extra insights to help you make the best decisions for your future.
1. Choose your attorneys wisely.
Picking the right person (or people) is crucial. Look for someone with solid financial skills and a proven track record of acting in your best interests.
If your finances are complex, consider appointing a professional, like a lawyer or accountant. Remember, it’s not just about trust—it’s about competence.
2. Minimise family drama.
We all know families can be complicated! If your loved ones don’t always agree, consider appointing someone who gets along with everyone or even an independent professional.
Less conflict means less chance of disputes and more transparency.
3. Don’t put all your eggs in one basket.
Appointing more than one attorney can provide checks and balances, but don’t go overboard—too many cooks can spoil the broth (and slow down decisions).
Two or three is usually enough to keep things running smoothly and prevent one person from having too much power.
4. Set clear rules for decision-making.
You can specify which decisions your attorneys can make alone and which require agreement.
For example, you might allow solo decisions for everyday expenses, but require joint approval for selling property or significant investments. This helps prevent any big moves you wouldn’t have agreed to.
5. Limit powers thoughtfully.
Be specific about what your attorneys can and can’t do. You might exclude certain transactions or require them to get approval from a trusted third party for big decisions.
The more tailored your instructions, the less room there is for misuse.
6. Build in transparency.
You can require your attorneys to inform certain people about their decisions—think of it a built-in watchdog.
This could mean providing regular updates or sharing documentation with a nominated person, which helps keep everyone honest.
7. Share your wishes.
Include non-binding directions about how you’d like your affairs handled. While these aren’t legally enforceable, they give your attorneys valuable guidance and help ensure your values are respected, even if circumstances change.
8. Align with your Will.
Ensure your attorneys know what’s in your Will (if you’re comfortable sharing). This helps them make decisions that don’t accidentally undermine your legacy.
Keep a list of your valued items and let your executor know where your Will is stored.
9. Prove your capacity.
Disputes often arise when family members question whether you had the mental capacity to make your EPOA. If you have any questions, get a doctor’s certificate when you sign the document. This simple step can save a lot of heartache down the track.
At a glance, here are the smart strategies you can use to protect your financial future.
Why this matters now more than ever
Elder abuse is under the spotlight, with a Queensland Parliamentary Committee currently investigating its prevalence and how to support those at risk better.
The latest stats show a slight but worrying increase in abuse notifications, with financial abuse second only to psychological abuse.
A recent survey found that a third of Queenslanders aged 65 and over don’t have an enduring power of attorney despite the risks.
That’s a lot of people potentially leaving themselves vulnerable, not just to abuse, but to confusion and conflict if something unexpected happens.
It’s important to remember that you can only make an enduring power of attorney while you have capacity. If you wait too long, you might miss your chance to have your wishes respected.
And while it’s possible to set up an EPOA yourself, getting professional legal advice can give you extra peace of mind and ensure everything is done properly.
The QPT’s new guide is a fantastic starting point, offering clear, practical advice for anyone thinking about their future.
If you’re worried about elder abuse or need support, don’t hesitate to contact the Elder Abuse Prevention Unit Helpline (1300 651 192) or your local seniors’ advocacy service.
Have you set up an enduring power of attorney? What tips or lessons would you share with others? Or do you have concerns about financial abuse in your own life or family? We’d love to hear your thoughts and experiences.
Also read: Royal Commission hears ‘terrible’ abuse against disabled persons
