The Barefoot Investor has slammed a couple in their 60s who will not share their fortune with their seven children because they do not trust any of the kids to look after them in old age.
Self-proclaimed ‘grumpy boomers’ Donna, 68, and Steve, 69, penned a letter to Scott Pape last week seeking advice on appointing a person to manage their finances.
The retired pair have an asset base of about $7.5million and a total annual income of about $350,000.
Many retirees with that level of wealth would begin sharing it with their children, but this couple fears the kids will not be willing to spend any of it on looking after their elderly parents.
‘Chances are we will probably die not having spent all we own. But here’s my problem.
‘We have seven kids between us and would not trust any of them to look after us in an unselfish and humane way when we can’t look after ourselves anymore.
‘Too many times we have seen kids treat elderly parents badly in order to protect their inheritance. Any suggestions while we still have control,’ they asked.
A boomer couple who are enjoying their retirement with $7.5million in assets, claim they can not trust their seven children with controlling their money (stock image)
The Barefoot Investor told the couple their predicament did not reflect well on the family.
‘What are the chances … you have seven kids and they are all horrible,’ Mr Pape joked.
He explained each state and territory have regulations for appointing a power of attorney, a person to manage finances, or someone to make health and medical decisions known as an enduring guardian or medical treatment decision-maker.
Mr Pape highlighted the importance for older people to choose the right person to manage their finances and health.
‘I discussed the options with my estate planning lawyer Dr Brett Davies who emphasised the importance of choosing someone trustworthy,’ Mr Pape wrote.
‘It could be a professional like an accountant, financial planner, or lawyer, but these professionals charge fees and often hand off tasks to junior staff.’
Scott Pape (pictured) said it was important the couple choose someone trustworthy and advised them to use their time and money to rebuild trust with their children
However Mr Pape advised Donna and Steve that their best path for the couple would be to repair the relationships with their kids.
‘Your safest option may still be your children. Yet that means that when you lose your mental capacity you’ll likely be under the control of your children. And that’s the rub,’ Mr Pape wrote.
‘You may have seven bricks in the bank, but you aren’t wealthy if you can’t trust them to look out for you as you get older.
‘If I were in your situation I’d spend as much time and money with my kids and grandkids as I could, trying to rebuild the trust and relationships you have with them. That’s where true wealth lies.’
It’s estimated about 2.1 per cent of older Australians have experienced financial elder abuse a year, according to the 2020 AIFS National Elder Abuse Prevalence Study.
The study found 64 per cent of that financial elder abuse was perpetrated by a family member.
It comes as the Older Persons Advocacy Network received almost 1,300 calls regarding elder abuse in the six months to March 2024 – ahead of World Elder Abuse Awareness Day on June 15.
