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Financial planning
for the elderly
LUCAS COETSEE
LIBERTY LEGAL SPECIALIST
WHAT THEN ARE THE SOLUTIONS?
T
here are basically two
options – you can apply to
the High Court (only the High
Court has jurisdiction over such
matters) to have your parent/s
placed under curatorship. This
is a complex and costly process,
requiring compelling medical
evidence as well the services of
not only an attorney, but being a
High Court matter, also an advo
cate.
The other option is to apply
for an administration order in
terms of section 60 of the Mental
Health Act. This would be the
cheaper route, but the administra
tor’s powers are more limited than
the curator’s and it is necessary to
report to the Master on an ongo
ing basis, and so this could be
very time consuming.
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A possible alternative solution
is to ensure that assets are held
in trust, prior to your parents
needing such an intervention. The
trustees would then be able to
make financial decisions (without
the need of a court order), for the
benefit of your parents. The issue
is – you don’t know if this will
even be necessary and the costs
and taxes may be prohibitive. In
the situation where all the siblings
are emigrating and only the parent
is being left behind, it may be
worth seriously considering this
option and taking legal advice on
it.
HOW DO YOU PREVENT YOUR PARENTS
BEING TAKEN ADVANTAGE OF?
The first step is to be clear that
prevention is better than cure!
Try to ensure that you regularly
discuss financial matters with your
parents so that you, the children,
are the first point of call. Also
vet all financial advisers who deal
with them. As people get older
they may also tend to get more
suspicious and secretive,
so you need to start this
early on, to ensure that
it is habit before it
is too late (and your
OCT/NOV 2017 • SENWES Scenario
PART II
parents start to question your own
motives). Don’t give one sibling
all the power. Even if practically
one sibling does the work, the
others should be kept up to date
with what decisions are being
made and why. This prevents any
fraudulent activity and also allows
for continuity. Should that sibling
no longer be able to fulfill that
function, the transition to the
next should be seamless.
If they lack mental capacity or
are extremely frail, try to get them
into a suitable facility as quickly
as possible (and this requires
MONEY – so be sure when
assisting them with their finances
you factor this in). Also decide,
based on legal advice, between the
curator or administrator route.
When dealing with your own
financial planning, remember
that in terms of our common
law, there is a reciprocal duty to
support between parent and child.
So always make sure that your
parents' financial dependency on
you is taken into account when
attending to your own financial
planning needs.
Truth be told, we are all a
little preoccupied with our own
lives – and we can easily neglect
our parents – and this creates
an environment where they can
be taken advantage of, even by
family members. Even if you are
no longer in the same country as
your parents, regular contact can
prevent many problems before
they occur. If you genuinely
believe someone is acting unlaw
fully with regard to your parents'
finances, lay a criminal charge
against them.