The Federal Government has made a proactive move to protect older Australians’ assets with disincentives for seniors to create formal ‘family agreements’ to be removed from 1 July 2021.
Many older people looking to stay living at home make arrangements with their adult children to sell their home and buy into a property together – but these arrangements can go badly wrong without the right legal protections.
Also known as ‘assets for care’ agreements, family agreements protect the financial rights of older people and ensure there is evidence they contributed to a property, in the event of a relationship between their family or partner breaking down.
Age Discrimination Commissioner, the Hon. Dr Kay Patterson HO, has welcomed the decision.
“Financial elder abuse is on the rise during COVID-19 so making it easier to formalise arrangements to protect older people is important,” said Dr Patterson.
“I’ve heard of too many cases where an older person has contributed significant money to build a ‘granny flat’ or extension to their children’s home, on a verbal understanding that they will have accommodation and be cared for in exchange – but if the relationship breaks down it can have devastating effects, and can even leave the older person homeless.”
