Are you worried your elderly loved ones are being taken advantage of?

Let’s expound on how estate and gift planning can protect them with this case study.

Estate & Gift Planning can feel like an overwhelming concept to digest. No one wants to think about the end of their life and oftentimes, people assume that setting up an estate and gift plan is only necessary for the ultra-wealthy and elderly. That assumption couldn’t be further from the truth.

Almost anyone over the age of 18 should at least consider creating a Will (and anyone who has children, owns a home, or has over 10,000 Ghana Cedis in assets should potentially consider setting up a Trust.

Consider this Case Study – The Problem

Ama Abrabopa was contacted by her uncle Mr. Showboy who informed her that he recently updated his Will — making Ama Abrabopa and her sister heirs to his estate.

Upon receiving the news, Ama Abrabopa traveled across the country to take care of him because his health was in poor condition.

When Ama Abrabopa arrived at Mr. Showboy’s home, she found that Mr. Showboy had allowed a homeless man to live with him. For how long? Ama Abrabopa wasn’t sure. It was clear however, that the homeless man had been manipulating Mr. Showboy in an attempt to take his assets and money. 

Ama Abrabopa called Mr. Showboy’s doctor to get information regarding Mr. Showboy’s health and the doctor informed her that Mr. Showboy had been experiencing severe cognitive disabilities. This was the first time Ama Abrabopa had been made aware of the extent of her uncle’s mental issues. All she knew was that he was unknowingly being taken advantage of and she felt it was her responsibility to put a stop to it. 

She decided to seek advice from a lawyer to find out whether or not she could better secure Mr. Showboy’s estate and protect him from being further manipulated. 

The Solution 

No one wants to entertain the idea that a family member or someone they love could be taken advantage of by a complete stranger. The reality is that cases like this happen more than people imagine.

Unfortunately, as our loved ones age, their mental health can suffer. And if they own property or have other assets that need protection, a comprehensive estate and gift plan is a must. Even if a person has a Trust or Will in place, people can try to take advantage of the elderly or mentally ill in an effort to take a portion of their assets. That’s why it’s so important to ensure that your loved ones plans are revisited and updated regularly.

Fortunately, Ama Abrabopa has a route she can pursue to protect her uncle:

1. Have a court appoint a Guardian or Next Friend to represent him.
2. Help him prepare a Power of Attorney to name someone as his agent. Only possible if the issue of the uncle is not mentally incapacity

Appoint a Guardian or Next Friend

If Mr. Showboy’s cognitive disability has escalated to the point where he is unable to care for himself or manage his own affairs, Ama Abrabopa may be able to have a court appoint a Guardian or Next Friend to represent him with the asistance of a lawyer.

This option would likely require Mr. Showboy’s doctor to certify that Mr. Showboy is in fact unable to care for himself. Judicial action would then take place and a court would then put someone else in charge of handling Mr. Showboy’s affairs.

If the court decides that Mr. Showboy does need a Guardian or Next Friend, then Mr. Showboy would be able to carry on his affairs as a normal person without any mental challenge and quickly make all necessary changes to his estate and gift plans.

Prepare a Power of Attorney
If Mr. Showboy’s situation is that of mental incapacity, then he cannot also execute a power of attorney.

Option two is for Mr. Showboy to prepare a Power of Attorney to name someone as his attorney if he is still of sound mind. This option is similar to a Guardianship or Next Friend in many ways, but it’s a voluntary act by Mr. Showboy, and one he could later revoke or revise. That’s important because it means he can also revoke any Power of Attorney he’s made to benefit the homeless occupant.

If Mr. Showboy decides to make Ama Abrabopa his attorney, the Power of Attorney should permit Ama Abrabopa to check his emails, post office mails, or any other mode of communication or record and make a list of Mr. Showboy’s bank accounts and other financial assets. Ama Abrabopa can then contact those financial institutions to inform them that she is the attorney of Mr. Showboy and complete documentation to become a signatory to his accounts.

Ama Abrabopa should also create a new Estate & Gift Plan on Mr. Showboy’s behalf to ensure that no hidden documents exist that attempt to name the homeless occupant as beneficiary. Why? Because it’s easier to revoke a plan than it is to contest it after the death of Mr. Showboy.

Other important considerations

Many legal actions require a certain level of mental capacity but the minimum level required can vary. For example, the capacity required to create a Will may be lower than that required to create a Trust.

Additionally, it’s possible that Mr. Showboy has the mental capacity now but may not have capacity in the future if his medical condition is progressive, which can make time an important consideration. 

Delaying even a few months might be the difference between Mr. Showboy being able to clear the situation up himself vs requiring court involvement for resolution.

Lastly, financial abuse can be criminal or civil fraud. Many countries have passed laws to punish those who take advantage in situations like this. Ama Abrabopa may also wish to contact a lawyer or the Legal Aid Department to learn more about what options are available. This may also reveal any other information that might help clean up Ama Abrabopa and Mr. Showboy’s situation. 

The thought of a loved one being manipulated in any way, shape or form is not something anyone wants to face. That’s why it’s so important to have an Estate & Gift Plan in place that’s legally-binding and comprehensive whilst one is mentally sound and healthy so that you’re prepared for the unexpected.

October is Estate & Gift Planning Awareness Month Campaign, we encourage you to get and keep your estate and gift plans in place.