Federal Politics

Stop children stealing from elderly parents using power of attorney, Law Reform Commission says

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A national register of people holding power of attorney should be established to prevent money-hungry children stealing from their elderly parents, the Australian Law Reform Commission has recommended in a discussion paper on elder abuse.

The independent body says enduring power of attorney is being used by some people as a "licence to steal" and the system currently offers no way of verifying attempts to withdraw or transfer money on behalf of an elderly person.

The ALRC's findings, released on Monday, also home in on "early inheritance syndrome", a growing form of financial abuse whereby children are eager to get money out of their parents before their death.

"People describe powers of attorney as a licence to steal," ALRC president Rosalind Croucher told the ABC.

"And there might be multiple powers of attorney. There's an uncertainty as to which one is the right one, which one is the most recent, and which is the valid one."

Professor Croucher said there was currently a danger of "pressure and coercion", and further safeguards – such as a requirement that two people including a lawyer, doctor or police officer be present when an enduring power of attorney document is signed – should be introduced.

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Attorney-General George Brandis established the ALRC inquiry in February following widespread reports of psychological, financial and physical abuse and neglect of elderly people by relatives, friends and parents.

Bullying, harassment, assault, theft, forced sale of assets and property, forcing them to pay bills and taking over their house are some examples and research suggests that about 6 per cent of elderly Australians are victims of elder abuse every year.

The ALRC and Age Discrimination Commissioner Susan Ryan have observed a growing risk of elder abuse as Australia's population ages.

The new proposals would also include a provision in the Code of Banking Practice to prevent financial elder abuse and two people would be required to approve access to a person's bank account.

People who are carers, bankrupt, prohibited from directing a company or have a criminal record of fraud or dishonesty would be prevented from being enduring attorneys and state-based public advocates or guardians could also be empowered to investigate cases of elder abuse 

"In developing the proposals in this discussion paper we have worked to balance the autonomy of older people with providing appropriate protections, respecting the choices that older persons make, but also safeguarding them from abuse," Professor Croucher said in a statement calling for community feedback on the proposals.

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