Dementia and financial concerns

Yet it is something that is rarely spoken about in the public domain.  In  response to this, AlzNSW conducted a research  project  that aimed to:

• Understand how financial abuse of people with dementia occurs and identify gaps in law and policy that enable it to occur;

• Identify what will reduce the likelihood of financial abuse occurring and influence law and policy makers to initiate these changes; and

• Educate service providers, people with dementia and carers about how to prevent financial abuse.

A discussion paper, “Preventing Financial Abuse of People with Dementia” by Alzheimer’s Australia NSW published in June 2014, presents the findings of their research. It examined how financial abuse of people with dementia occurs, how financial abuse is reported and investigated, and what could be done to prevent abuse. Recommendations are provided for the NSW and Australian Governments, the financial and legal sectors, and providers of community services to help safeguard people with dementia from financial abuse and to reduce the incidence and magnitude of financial abuse of people with dementia. This project was conducted in the NSW context however its findings and recommendations have implications for Governments and service providers in other Australian States and Territories.

 For some real life examples of financial abuse of people with dementia, read on.

Examples of financial abuse of people with Dementia (as reported by service providers)

“A mother with dementia was moved from her home by her daughter, and without the knowledge of her son who lived in the UK.  She was taken to live with the daughters' family and was locked in a bedroom. The mother executed a Power of Attorney at a time when she lacked capacity.  Her house was sold without her knowledge and the funds were used to pay off the mortgage on the daughters' house and buy a four wheel drive. It was also used to buy a family holiday, pay for school fees and a trip to New York for one grandchild. The mother therefore lacked funds for a bond for a residential facility, which she would otherwise have been able to access. Instead she was locked away with no stimulation or independence until her son returned to Australia and discovered the abuse.”

“An elderly widow without immediate family with dementia was befriended by a real estate agent. He was a friend of her gardener. She owned her home. He charmed her and she took mortgages out over her home to lend him money and buy him a car. She is now in a nursing home. Two thirds of her assets have been taken. It was an aged care assessment team member who suspected the abuse but only after most of the funds had been taken.”

 "A nephew would present his aunt with a blank cheque and tell her he was going to purchase groceries.  He would fill in the amount himself after she signed, then take the cheque out for thousands of dollars.  He was working towards having her discharged to his care and purchased a new four bedroom home, where he reported he would look after his aunt. He also purchased a Mercedes Benz car!"

 “An unemployed man moved in with his mother 'to care for her' but in fact he spent all her money on drugs and alcohol and she could not recognise what was happening.  Neighbours suspected it was happening but were helpless to support this lady who refused to acknowledge her dementia or her sons' abuse.”

 "The daughter and her partner (who has Power of Attorney) moved in with mum who has dementia.  They have four children and decided the house was too small so sold and purchased a new two storey home. Their mother is in a small room downstairs with a bathroom in the family laundry, but the home and all attached amenities are in her name. Often her accounts for care and services cannot be paid. .. but she is unwilling to go against her daughter as she says “she will be put in a nursing home if she stops her daughter from using money'."

 “A son and daughter, who were both solicitors, changed the title deeds on properties owned by their parents into their own names. They had systematically sold the parents' share portfolio and recouped the funds to themselves. Their parents are living in an inaccessible and very small rental property - effectively leaving them with no assets. Neither of the parents are aware as they both have cognitive decline and as they trusted their children they signed anything put in front of them."

 Source: 

Preventing Financial Abuse of People with Dementia, Alzheimer’s Australia NSW, Discussion Paper June 2014