The Australian Law Reform Commission says powers of attorney are being used by children as a ‘licence to steal’ from their elderly parents and should be reformed.
The commission, which is conducting an inquiry into elder abuse, says a national register of enduring powers of attorney should be established to prevent such exploitation in a discussion paper released on Sunday.
The president of the ALRC, Prof Rosalind Croucher, told the ABC there was currently no way of checking the validity of the power of attorney document when an elderly person’s relative or carer attempts to withdraw or transfer money on their behalf.
“People describe powers of attorney as a licence to steal,” she said. “And there might be multiple powers of attorney.
“There’s an uncertainty as to which one is the right one, which one is the most recent, and which is the valid one.”
The commission also proposes a requirement that at least two people — one of whom is a lawyer, doctor or police officer – observe the enduring power of attorney document being signed by the elderly person to ensure they understand what is happening.
Under the commission’s changes, a strategy to tackle financial elder abuse would be incorporated into the Code of Banking Practice and transactions affecting an elderly person’s account would need to be approved by at least two people known to them.
