With the recent rise in awareness of financial abuse of elderly individuals and the misconduct of executors of deceased estates, it is imperative to validate any suspected wrongdoing in order to pursue legal proceedings.
Asset (or funds) tracing is a method of financial investigation which analyses bank statements and other financial information to summarise and categorise transactions to assist in the validation of suspected or known elder abuse or executor misconduct.
The process of tracing
Asset tracing involves a complex analysis to identify assets and the flow of funds, requiring a combined skillset of forensic accounting, investigation and technology.
We perform detailed searches of publicly available information, from both a corporate and property perspective, to locate any relevant assets that may assist clients with their proceedings.
Using a sophisticated set of tools and resources, financial records, bank statements, documents and emails are analysed to reconstruct financial records and find out where money has gone, across multiple jurisdictions.
For more information on asset tracing, including the core principles, view our article A treasure hunt: the process of tracing assets.
Tracing in elder abuse or executor misconduct
In matters involving elder abuse or executor misconduct, tracing is most commonly used to investigate the outflows of funds from the bank accounts of the elderly individual or deceased estate by the Enduing Power of Attorney (EOPA) or executor. In most cases, the EPOA or executor are a family member or close friend of the elderly or deceased individual.
In our experience, the wrongdoing (the misappropriation of funds) can occur inadvertently as a result from not understanding their formal obligations as an EPOA or executor.
However, in most cases the wrongdoing is deliberate – akin to fraud – whereby the EPOA or executor is seeking a financial gain from the elderly or deceased individual with reasons varying from a belief they should receive some benefit from undertaking the role or the asset will eventually be ‘their asset’ and spending it now is no different than spending it later.
The most common types of transactions identified in a tracing investigation of elder abuse or executor misconduct are:
- Transactions which are not consistent with the narrative of the bank account owner such as an elderly individual in respite engaging in the purchase of luxury goods, holidays or even groceries, alcohol and cigarettes.
- Transfers of funds to bank accounts usually in the name of or for the benefit of the EPOA or the executor.
- Purchases of goods or supplies from the business operated by the EPOA or executor or a related party.
- The sale or leasing of assets owned by the elderly individual or estate where the income is not received into the appropriate bank account.
An efficient and effective solution
Asset tracing is an efficient and effective solution to claims of elder abuse or executor misconduct using technology solutions to quickly summarise, categorise and identify suspicions transaction with a bank account or a number of bank accounts.
This is contrary to the ‘old school’ method of hard copy bank statements and a highlighter, which may provide an initial ‘tester’ method, but is likely to be inaccurate, ineffective and a costly process when undertaken by a professional.
We’re here to help
Engaging forensic accountants with specific expertise in asset tracing can make a substantial difference in the identification and quantification of elder abuse or executor misconduct.
Our team of specialist forensic accountants and investigators have extensive experience in tracing assets and the flow of funds.
If you need assistance in the identification and quantification of elder abuse or executor misconduct, please reach out to our team of experts today.
Learn more about how our Health & Aged Care services can help you
