CANADA: Financial Abuse, Abuse of Power of Attorney a Growing Crisis for Seniors

VANCOUVER (Vancouver Sun), February 23, 2008: Financial abuse of the elderly is a huge and growing problem as frailty and rising rates of dementia can leave the assets of Canada's aging population to the mercy of their children or other relatives. Some of those charged with the responsibility of caring for aging relatives can't wait for them to die and abuse power of attorney agreements to spend the seniors' money on themselves, experts say. "It is a national and international crisis," said Laura Watts, national director of the Canadian Centre for Elder Law. "What we are seeing is increased abuse of power of attorney. It appears to be on the rise and certainly we will have more of it occur as our baby boomers age." Houses can be sold with the money ending up in the hands of someone other than the senior who owned it. Properties can be encumbered by mortgages that drain what is often the only big asset a pensioner owns. "There are scenarios where [relatives] might use the money for supplementing their own accounts, or they may use the money to invest in their home," said Watts. "Those are real things happening every day and seniors often have little recourse because they don't have money to hire a lawyer." The people who carry out financial abuse often are well-meaning adult children who see no reason why Mom's money should be sitting in a bank account or funding high-priced home care when it could be financing their annual cruise, or a new kitchen. Or they are loath to spend their inheritance on perks for their aging parents. "It is not just the kids, it often is close friends and family members," said Watts. "There is one group that doesn't understand their role, the innocent misuse of power of attorney because they don't understand what they should be doing and the high level of responsibility they have. Then there is the group that uses power of attorney to ruin someone financially. "What's different with seniors is that the results are often dramatic and often cause death." Watts said elder abuse can result from a sense of entitlement on the part of family members or be done by "a new best friend." "The core issue is where people are unclear or uncertain of their roles or responsibilities and many times see it as 'it's my money anyway, I'm going to inherit it,'" she said. In the most blatant cases involving a new "best friend" who gains power of attorney to oversee financial affairs, seniors can be targeted, exploited and left penniless and alone, Watts said. Other cases of financial abuse of the elderly are less obvious: "What if your older mother lives with you and she is mentally incapable and your roof caves in," Watts said. "You may not have ready cash to fix the roof but you have power of attorney over a fund of money and she needs a roof, too." Watts said many baby boomers -- carrying debt loads among the highest in history -- are looking to their parents' nest eggs for a bailout. "I think it is going to be one of the most significant issues in the next 10 years," she said. "Probably one in 10 or one in 12 seniors in Canada is subject to some abuse and financial abuse is one of the most common." Watts is also past-chair of the British Columbia Coalition to Eliminate Abuse of Seniors, which is opening a legal clinic at its headquarters in downtown Vancouver this summer. Continue reading __________________________________________________ ABUSES CAN INCLUDE: - Misusing a power of attorney. - Persuading, tricking or threatening the adult out of money, property, or possessions (and this includes attempts to do any of these). - Cashing pension or other cheques without authorization. - Use of the adult's money for purposes other than what was intended by the adult. - Unduly pressuring older adults to move from, sell or relinquish their home or other personal property; make or change a will, sign legal documents they do not fully understand, change or keep their marital status; give money to relatives or caregivers; engage in paid work to bring in extra money; care for children or grandchildren. - Financial abuse against older adults can include family or friends refusing to move out of the adult's home when asked; sharing their home without paying a fair share of expenses; unduly pressuring the older adult to buy alcohol or drugs. Source: Vancouver Coastal Health/Department of Justice Canada __________________________________________________ By Gillian Shaw, Vancouver Sun © 2008 Canwest Interactive