Financial Abuse of Aussie Parents on the Rise
Adult Children Use Power of Attorney to Legally Steal from their Parents
There is a rising rate of Australian children abusing their elderly parents financially, the Herald Sun reports.
A report by Senior Rights Victoria disclosed that 30 per cent of 695 people who asked advice from the organization in 2010-11 sought help over financial abuse. Among their abusers, 29 percent were sons and 18 percent were daughters. Also included among the abusers were grandchildren.
Another study by the Elder Abuse Prevention unit of Senior Rights reported over $14 million was filched from elderly parents during the year 2007-08 in Queensland alone. The unit estimated that throughout Australia the amount would reach $97 million.
The most common tool that adult children use to legally steal from their parents was the power of attorney which provided the former access to bank accounts or properties. In one instance, a widow became homeless because her son asked her to turn it over to him for use as collateral in a business loan.
In Victoria, the organization State Trustees is probing at least 60 possible cases of financial abuse by senior with the perpetrator often someone close to them.
"It's actually really common, but it does not get reported. The poor parents are so embarrassed about it," Sister & Gordon solicitor Michael Clohesy told Herald Sun.
"It's amazing what people do. They think mum and dad are old anyway, they don't need the money, there's $150,000 sitting in the account," he added.
Mr Clohesy explained that the reason behind such thinking is the children's sense of entitlement to their parents' wealth.
The rise of such cases has led some Australian banks to become less willing to lend money to elders since they have been alerted to the possibility that the senior parents are easy targets of interest-free loans from their adult children.
With Australia's graying population, Senior Rights Victoria manager Jenny Blackey warned more financial abuse of parents may take place.
"Most cases are perpetuated by close family members. As a result the crime is a very silent crime, a hidden crime and one that is kept very much in the confines of the family," State Trustees Manager Steve Cowell said.