With growing concerns over a rise in elderly financial abuse, is it time to reform lasting powers of attorney? Jean-Yves Gilg reports
There shouldn’t be anything suspicious about a young man accompanying his aunt to see her solicitor. Frail or elderly people often seek the assistance of family members when making important decisions. Most of the time, there is indeed no concern, just a caring relative looking after a loved one. But there is a growing sense among private client practitioners that financial elderly abuse is on the rise, and an overly protective nephew could be a sign that the situation is perhaps not as straightforward as it seems.
Elderly financial abuse is a crime that takes place behind closed doors. It can be difficult to spot and there is no official data on how prevalent it is, but concerns have been rising, in particular in relation to lasting powers of attorney (LPAs). Introduced in 2005 to replace Enduring Powers of Attorney, LPAs initially had to include a provision for the notification of a third party—usually it was a family member—when activated. This
