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Older People, Financial Assets and Abuse: Developing policy and practice responses

from research Cheryl Tilse

Advocare

Perth, June 2007

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The Team

Multi-disciplinary research team: social work, economics, finance, law & social policy, community

development

Professor Jill Wilson, Dr Cheryl Tilse, Professor Linda RosenmanDr Deborah Setterlund, Dr David Morrison, Anne-Louise McCawleyJennie Peut and Leona Berrie in the community demonstration project

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Research Partners Partners: Australian Research Council;

Queensland Government – Public Trustee, Guardianship Tribunal, Adult Guardian, Public Advocate and Office for Seniors; Queensland Law Society; & Aged Care Providers, Wicking trust

Community partners: local banks, aged care providers, care workers, older people’s organisations & carer organisations, city council, police

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OutlineA. Brief overview of research program

B. Key findings from our research on asset management and financial abuse.

C. Implications for building knowledge for policy, practice and communities about financial abuse of older people.

D. An example – Redcliffe Community demonstration Project

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A: Research Program 2000-06

Asset Management

National survey: n = 3,466.

In-depth studies of 81 asset managers and 34 older people having their assets managed.

Financial Abuse

In-depth study of practitioners’ decision-making and action in relation to financial abuse: n = 20.

Analysis of GAAT data – patterns of financial abuse for older people with impaired capacity: n = 234.

State survey of aged care workers: n = 159.

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Financial abuse in context Differs from other forms of elder abuse -

responses should be specific to this form of abuse

Differs from fraud targeting older people – occurs in a relationship of trust

Is embedded in a family, social and cultural context that includes

• everyday activities of managing money in families and

• social attitudes and cultural values relating to older people, their assets, self provision and paying for care, intergenerational transfers and inheritances

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Financial abuse definition Illegal or improper use and/or

mismanagement of a person’s money, property or resources in a relationship of trust.

Includes: deliberate abuse, undue influence, misuse of EPAs, withholding of funds, failure to repay loans or recognise financial contributions, using possessions without permission.

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Asset Management Focus Asset management involves some control

over organising, decision-making and use of assets - income and capital assets.

Includes: day-to-day management of finances, management of investments and property to ensure long-term financial security, management or dispersal of major assets (e.g. home).

Interest is in non-professional asset managers - family, friends and neighbours.

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B: Findings: Asset Management (AM) Practices

Managing assets is a common task of carers - one in four Australians had helped an older person with their assets in the past year (2002).

Most commonly adult children assisting parents and parents-in-law for reasons of lack of confidence, disability, poor health and cognitive incapacity.

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AM practices vary

Complexity of tasks Mechanisms used to manage

• Informal (using ATMs etc) • Semiformal (bank arrangements) • Formal (EPA, administration)

Degree of involvement of older person – and the fit with OP’s expectations

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Asset Management TasksTasks

n = 1,259% receiving help with

tasks

Paperwork 72.5

Paying bills 54.5

Accessing money / banking 42

Managing pension/superannuation

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Property management 31

Accessing financial advice 16

Managing investments 11

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Mechanisms Used to Manage Assets

Mechanisms: n = 1,259 %

Formal

Enduring Power of Attorney 15.4

Guardianship 1.4

Semi-formal

Banking arrangement 18.7

Informal

ATM pin number 9.8

Electronic banking 10.5

Signing cheques and withdrawals 17

Paying own money 49.7

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AM practices A range of risky practices for both

asset managers and carers Poor accountability processes, limited

knowledge of responsibilities, decisions based on trust, co-mingling of finances

Underpinning attitudes of entitlement to assets and expectations of intergenerational transfers

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AM findings

A range of views on what constitutes convenient and appropriate practice

Issues of trust in families, convenience for carers and empowerment for older people.

Limited knowledge/mismanagement as well as intentional financial abuse. Also identified safe practices.

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Findings: Financial abuse

The context in which assets are managed or access to assets enabled.

Types of access (formal, informal etc) and practices associated with this.

Attitudes held - cultural, social and familial- that underpin practices.

Absence/presence of a capable guardian of the assets.

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Responses to financial abuse

Consider Detection and reporting Intervention and prevention Proactive as well as reactive

responses

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Reporting financial abuse Most common - aged care workers, social

workers, ACAT teams, family members. Rarely financial institutions, lawyers and

accountants. Adult protection services such as

Guardian, Public Trustee, Tribunals become involved when most of the assets have been lost.

Key issue then is early detection and response.

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Identification – what are the signs? Lack of assets to pay for care/services or

failure to pay bills. Unusual activity in bank accounts (large

withdrawals). Use or removal of older person’s assets

(e.g., car and home) without evidence of compensation or agreement – granny flats

Loans/gifts to family members without records.

Undue influence/pressure to gain EPA, change will, go guarantor, gift monies or property.

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Interventions: complex area of practice Actions:

Monitor - put in community care services, involve other family members, casework with older person or abuser if amenable.

Referral to legal services or advocacy services (if any).

Referral to Guardian or GAAT to investigate or change financial administration arrangements.

Limited options, concerns about impact on older person and on client/worker access.

Concerns about privacy legislation, duty of care and legal/financial knowledge

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Findings - summary Complex balance

to enhance monitoring, protection and prevention,

facilitate independence/autonomy of older people and

support family involvement.

Current systems have limited preventative focus, limited training and few early alerts

EPAs do not protect from abuse

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C: Policy and Practice Implications

Multi-level responses: individual, family, social, cultural and service delivery/legal/financial systems.

Multi-strategy responses: education, support, advocacy and improved systemic responses.

Whole of community response

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D: Redcliffe Community Demonstration project

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One Year Plan Community awareness and

education - issues and accountability

Inter-organizational protocols and referral networks

Staff training- for service providers, professionals, bank staff

Development and evaluation of materials

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Redcliffe Project – Education and support

Older people – workshops and information sessions - building confidence and skills to self-manage assets, and advocacy.

Carers/families – addressing attitudes and behaviours, assistance to develop good practices, enhancing financial literacy and accountability. Improving support.

Community - awareness raising, addressing ageism, attitudes towards older people’s assets and planning for older age. Improving financial literacy more generally.

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Workshops with carers and older people

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System Responses Improving referral networks, agency

protocols and cross-sectoral responses –Focus groups, survey and inter-sectoral meetings to develop a referral pathway.

Professional education and staff training – improving recognition and response. Focus on asset management as well as abuse.

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Working with networks

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Policy/Legal/Financial Responses

Improve the safeguards in current legal mechanisms such as Enduring Powers of Attorney.

Improve access to legal and financial information and advice.

Enhancing the role of financial institutions in education, alerts and reporting.

Addressing environmental barriers to self-management.

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Conclusion Complex issue requiring a range of

responses that address prevention as well as intervention.

Keeping protection and empowerment at the forefront.

Promoting attitudes and systems that protect older people and support families while fiercely maintaining older people’s right to make frivolous and imprudent decisions about their own assets.

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Key References Tilse, et al (2007) Managing the Financial

Assets of Older People: Balancing independence and protection. British Journal of Social Work. 37(3):565-72.

McCawley, A. et al.(2006) Access to assets; Older people with impaired capacity and finanical abuse. Journal of Adult Protection 8(1):20-33

Tilse, et al. (2005) Minding the Money. Ageing and Society 25(2): 217-227.

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References Tilse, et al. (2005) Older People’s Assets: A

Contested Site. Australasian Journal on Ageing 24(Supplement): S51–S56.

Setterlund, et al. (2003) Older People and Substitute Decision Making Legislation: Limits to Informed Choice. Australasian Journal on Ageing 21(3): 128-133.

Tilse, et al. (2003) The Mismanagement of the Assets of Older People: The Concerns and Actions of Aged Care Workers. Australasian Journal on Ageing 22(1): 9-14.

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Contact:

Cheryl TilseSchool of Social Work & Applied Human Sciences

C.Tilse@social.uq.edu.au