Financial abuse of a parent by an adult child is a horrible betrayal of trust.

When that child has been trusted by their parent and appointed by them as their attorney, under (usually) a Lasting Power of Attorney, the betrayal is even worse. In some cases, this behaviour can lead to criminal proceedings and jail.

The serious view that is taken of attorney abuse is illustrated in a case reported recently – Leeds Crown Court has jailed Jonathan Brook, 54, of Holmfirth for two years and 8 months for ‘fraud by abuse of position’.  Between April 2019 and October 2022, he defrauded his mother of more than £60,000 and spent it on online gambling.

The Lasting Power of Attorney made by his mother was revoked by the Office of the Public Guardian and then Kirklees Council investigated and prosecuted him.

• What Is Financial Abuse?
• Who Is Most at Risk of Financial Abuse?
• Who Commits Financial Abuse Against Elderly Parents?
• Why Is Financial Abuse So Hard to Detect?
• Real-Life Example: The Willpower Detectives Case
• How Widespread Is Financial Abuse by Attorneys?
• What Can Be Done to Prevent Financial Abuse?

What Is Financial Abuse?

When we talk about ‘financial abuse’ the sort of issues that can arise are:

• Theft.
• Misappropriation of money or property.
• Misuse of assets.
• Exerting undue influence to give away assets or gifts.
• Putting undue pressure on an older person to accept lower cost/lower quality services in order to preserve more financial resources to be passed to beneficiaries on death.

Who Is Most at Risk of Financial Abuse?

Sadly, those who have dementia or reduced cognitive function are at high risk of being victims of financial abuse, together with those who are in poor health with low levels of social support. The devastating impact of financial abuse on older people is emotional as well as financial.  Financially it is harder for older people to recover from abuse because they have less time and opportunity to work. Feelings of betrayal, distress, embarrassment and loss of self-esteem and confidence can impact the elderly.  Financial abuse is linked to negative health incomes and a decline in mental health.

Who Commits Financial Abuse Against Elderly Parents?

A review for Help the Aged in 2008 found that 70% of financial abuse is perpetrated by family members and that 60% to 80% of financial abuse takes place in the home. Sadly, the study revealed that 50% of financial abuse of the elderly in the UK is perpetrated by adult children against parents.

As a solicitor specialising in financial abuse, a theme I come across often is an adult child’s sense of entitlement to a parent’s financial assets.  Sometimes they will say that they are “only getting their inheritance early”, or that the older person no longer “needs it” or that they “deserve more” for all that they have done for a parent.

Why Is Financial Abuse So Hard to Detect?

One of the difficulties in tackling cases of financial abuse is that the abuse tends to start out with legitimate transactions and escalate over time.  There may be apparent consent by the parent, for example signed documents or evidence of gifts, but they may not be what they seem, if there has been ‘undue influence’. This can be very difficult to identify and prove.  There can be a misapprehension that if a victim of financial abuse has mental capacity that “it’s their choice” and nothing can be done. Financial abuse can happen when a victim is very much of sound mind. Often there is no power of attorney involved.

Alternatively, when a person does lack mental capacity, for example because of dementia, financial abuse may be perpetrated by someone who has been appointed to act as an attorney or a deputy.   An attorney is appointed by the individual themselves while they have mental capacity. A deputy is someone – either a family member or a professional – who is appointed by the specialist Court of Protection to manage the affairs of a person who has lost mental capacity and doesn’t have a power of attorney in place.

The really difficult cases involve vulnerable adults who do not necessarily lack mental capacity, or who ‘put on a good show’ to others of having capacity when they don’t.

Real-Life Example: The Willpower Detectives Case

The BBC series The Willpower Detectives was a chilling expose of how a partner in a firm of solicitors was able to use lasting powers of attorney to take over the finances of vulnerable clients. The final episode of the series was about John Wilcox who was diagnosed with dementia in 2020. It’s important to say that a dementia diagnosis does not automatically mean that someone lacks mental capacity. However, John became paranoid and delusional and started to believe that his wife Barbara and brother Desmond were plotting against him. While in hospital his family were unable to visit in person because of Covid restrictions. His granddaughter Amy began to take control of his life. Because John was assessed to have mental capacity, he was deemed capable at the hospital to sign a form banning contact with his family, apart from Amy. And to make a lasting power of attorney appointing her to deal with his finances. Barbara reported her concerns about her husband to Social Services, but they took no action.

After 3 months in hospital, John moved into a care home in Devon, many miles away from his home with Barbara in mid Wales. When family members tracked down the care home, they were told that he’d left; he had disappeared.

Then, a solicitor in Devon contacted Barbara to tell her that she needed to sell the family home, to release John’s share of the property. At the same time, she found out that John had made a new will, appointing Amy as his sole beneficiary.

The family eventually found John, dishevelled and confused, weighing only seven and a half stone, in a hotel room rented on a ‘room only’ basis in Torquay with no meals or laundry service. They managed to take him home to Barbara and set aside the will and power of attorney. He lived for another 9 months before passing away. Amy accepted a police caution for fraud in May 2024.

How Widespread Is Financial Abuse by Attorneys?

The Office of the Public Guardian (OPG) holds around eight million power of attorney records in England and Wales. Last year it investigated fewer than 1% of the cases brought to its attention.

So the answer is – no one knows. If loved ones don’t spot and report financial abuse it may only be after the victim’s death that it becomes clear. It may be possible to ‘clawback’ misappropriated money or property for the benefit of a victim’s estate after their death.

What Can Be Done to Prevent Financial Abuse?

A private members bill, introduced by Labour MP Fabian Hamilton, is due for a second reading in June 2025.  It aims to compel banks and regulators to check for issues such as cognitive decline and to impose duties to scrutinise whether an attorney is abusing their powers. Greater safeguards are essential – or there will be many more people in John’s position in the future.

Sarah Young – Director & Solicitor