MONEY: appointing a power of attorney

Appointing a power of attorney ensures someone will manage your finances if needed, but it can also leave you vulnerable.

As Queensland’s Premier, Anna Bligh was on the coalface of natural disasters. Now, as head of the Australian Banking Association (ABA), she is getting a first-hand account of a far more sinister problem – that of elder financial abuse. An estimated one in 10 Australians will be a victim of this callous crime each year, and perpetrators are often the children of elderly victims. “This is a really difficult, complex problem, but there are things that can be done about it,” Anna says. The Australian Women’s Weekly is lobbying the government to create better protection against financial abuse, specifically to ensure the very thing that is supposed to protect us, enduring power of attorney, isn’t turned into a weapon.

Why is this important?

Appointing an enduring power of attorney is a crucial for protecting your wealth. If you become incapacitated your power of attorney will pay your bills, manage your finances, and can even ensure your pet is cared for. If you don’t leave clear directions for the management of your affairs, loved ones can be locked out of simple transactions like accessing a bank account to pay bills. However, for an enduring power of attorney to work properly, the ABA argues, there needs to be a national register. Otherwise, power of attorney documents can become a tool of abuse.

More than 15 per cent of women have experienced financial abuse in their lifetime, according to the Australian Bureau of Statistics, and women are far more likely to be victims than men. Anna says bank tellers often see people being pressured to give access to their accounts, but lack the power to do anything about it.

“Staff have told me stories about very large withdrawals going out of an old person’s account being used for gambling and overseas holidays, when they know that person is in fact in a nursing home, confined to the home,” Anna says.

The Weekly is calling on federal and state governments to fast-track a national power of attorney register, which would enable power of attorney documents to be verified, reducing the chance people would use out-of-date or fraudulent documents to access funds they are not entitled to.

The power of protection

The extent to which abuse is happening is a very real concern, Anna says. “Unfortunately bank staff can often see people being pressured to give access to their accounts, in particular by friends that they trust, which can result in accounts being drained or misused.”

A national register would minimise power of attorney documents being misused, and would enable banks and hospitals to quickly check a document. In June last year, Attorney-General Christian Porter announced the government would work towards a national register. But with incidents rising sharply over the past decade, it’s important law makers do not delay. For more, visit financiallyfitfemales.com.au. AWW