As an estate lawyer, I work with a large senior population. One of the primary reasons I was drawn to estate law (and estate litigation in particular) is my passion for senior’s rights and autonomy, and combatting the harms of elder abuse that unfortunately exist in our society.
The Alberta Elder Abuse Awareness Network estimates that approximately 23,000 (about 1 in 10) seniors in Alberta are experiencing some form of elder abuse. This number is unfortunately on the rise as our overall population is ageing.
While elder abuse can take many forms, including psychological or physical abuse, the Government of Canada reported that financial abuse is the most common form of elder abuse in Canada.
While elder abuse can be perpetuated by anyone, including phone and internet scammers, the majority of financial abuse stems from loved ones, including spouses, children, caregivers, neighbours, or friends. People seniors may rely on. Seniors who live alone and have health struggles are the most vulnerable to this long-form abuse. These people use their close connection to get what they want. Elder financial abuse often occurs over a long period of time, and it can be difficult to recognize. It can be as explicit as making cash withdrawals from their bank account with no receipts, and without the permission or knowledge of the victim.
When power of attorney goes wrong
The misuse of authority granted under power of attorney can, in some cases, lead to the theft of financial assets. In some cases, someone with power of attorney may transfer your home into their name. It is important to appoint a power of attorney you trust, who will keep detailed records of all transactions, and keep you updated on every financial decision made on your behalf.
As an estate lawyer, I often am confronted with issues where a person appointed as power of attorney is misappropriating funds, or where a family member is cashing pension or insurance cheques without informing the senior.
Some signs that your power of attorney, or someone close to you may be engaging in financial abuse, include:
• Controlling activities, for example, restricting access to grandchildren unless money is exchanged.
• If a friend or family member asks you to change your Will or your power of attorney, and you’re unsure of the reason, or do not want to change the documents.
• Making decisions about your money, or loaning money, or making gifts without your knowledge and consent.
• Making purchases without your knowledge, or for items you do not want or need.
• Asking to transfer your property into joint names.
• Refusing to answer question about your finances.
It is important to remember that your assets are your own, and belong to you. This is the case even if you have an active power of attorney. Anyone acting as your power of attorney has a duty to take care of your finances in a manner that is in your best interest.
If you are concerned that a friend, family member, or your power of attorney is making decisions about your finances of which you are unaware, you do not understand, or you haven’t authorized, it is important to speak with a lawyer to understand your options and to protect your assets.
A power of attorney should be keeping a ledger of all the financial transactions they make on your behalf. If you are concerned that decisions are being made that are not in your best interest, you can bring an application to the Court of King’s Bench. This order would require the power of attorney to produce proper accounting records of their actions regarding your finances. If it is shown the power of attorney is acting inappropriately or has taken funds, then you can apply to have that person removed as power of attorney and protect your assets. An estate lawyer can help you decide whether an application is necessary or advisable. They can also advise you on what steps to take to best protect your assets from financial abuse.
