Sorting out finances

Hello Rebecca,

Thank you for reaching out on EnableMe. It sounds like your mum and family have been through a very challenging time. What you are describing is something that many family members have experienced so hopefully others will reply to your post.

It is a difficult situation and without an Enduring Power of Attorney (EPA) or Administration order there is little that can be done formally without going to the State’s Civil Administrative Tribunal (CAT). If a person loses capacity and they have not made an EPA, unfortunately it is too late for them to make an EPA. This is because a person must have sufficient legal capacity to make an EPA. Once a person has lost capacity the only option is for a family member, close relative, close friend or even a trusted professional (such as a lawyer or a financial adviser) to apply to the CAT of the state your mother is living in. The CAT will consider whether an Administrator is needed. An Administrator has the power to make decisions for the person about specified financial matter(s). You may need to provide a medical or specialist report about your mum’s decision- making capacity.

The Office of Public Advocate (OPA) in your mum’s state, may be helpful in this matter. Whilst the CAT in her state makes any final decisions about Administration, OPA can answer questions regarding the process. For example if your mum is also in Western Australia, consider the OPA website WA or phone 1300 858 455 for their advisory line.

If you would like to talk further about stroke and your mum’s situation, please don’t hesitate to contact our friendly health professionals on 1800 787 653 or email strokeline@strokefoundation.org.au. 

Kind regards,

Kath (StrokeLine) 

Hi. Personally such laws look strange to me. How can an official know better than a child what a mother who has lost her legal capacity needs?

Thanks Corio and Kath. The situation is very frustrating and doesn't always make sense. For example, when an insurer won't cancel a policy without an EPA which cannot be got now and keeps auto deducting payment for insurance of contents at a home she no longer lives in. I'm sure you couldn't insure contents at a residence you don't live in. Seems like they're taking money without good reason now they've been advised of the situation. 

Find it more than a bit annoying to have to work out solutions as an individual when I'm sure this isn't a completely unique situation.

Hello Rebecca

Thank you for sharing your experience.

Agreed - it can be very frustrating when businesses and corporations are so tight with their processes and procedures and leaves no room for flexibility or exceptions.

As you said, this would not be a unique situation for them, and they would have some processes in place for these scenarios, and it just adds to frustration.

This said, below is an alternative avenue you can explore to make things happen.

1. Other Proving Documents: 

Consider having any letters or documents from your mother’s medical professionals which states that your mum will be moving to a residential aged care post stroke.

Consider getting a letter from the residential age care stating that you Mum is a resident at this age care from the respective date.

2.     Call the insurance provider and speak to a manager:

Explain to the manger about the situation.

Explain you have other documents (as above) to prove that your mom doesn’t live at the respective property where the content insurance is provided.

If the manager agrees to stop the direct debit don’t forget to ask them about the refund policy for the direct debit period where your mom was not living at the property.

If the manager disagrees let them know you will be lodging a complaint with the Australian Financial Complaints Authority (AFCA).

 3.      Lodge a complaint to Australian Financial Complaints Authority (AFCA):

AFCA considers complaints that previously would have been handled by the Financial Ombudsman Service.

They consider complaints about insurance including domestic insurance such as home and content.

To Make a complaint use this link: https://www.afca.org.au/make-a-complaint

We hope this will gives you a bit more structure and an alternative avenue.

Please let us know how you go or if you need any further information.  Do feel free to reach out to us here at StrokeLine. You can call us on Ph 1800 787 653, or email us on strokeline@strokefoundation.org.au.

Kind regards

Razni and Siobhan - StrokeLine

Difficult situation for sure! We don't think of so many things before something happens. My wife had to go through a lot (with the help of a lawyer, VCAT, etc) while I was lying in ICU unresponsive for three weeks. Now, we have everything sorted! Also, important to nominate a beneficiary for your Super account (if you have one). 

What is the likelihood that AFCA will make a favourable decision for the applicant?

Here is another interesting article about AFCA https://asic.gov.au/about-asic/contact-us/reporting-misconduct-to-asic/disputes-with-financial-firms/