Taken from within

KPMG have published their 'fraud barometer' and for those of us who deal with older and more vulnerable clients, it makes for uncomfortable reading. It states: 'Fraud on families by one of their own grew by 384 per cent compared to the same period last year. Elderly relatives were some of the main victims, and had £1.7m stolen from them by younger members of the family.'

People are living longer, which means their young relatives are dipping in to what they view as their 'inheritance', before it in fact becomes that. The reported cases are likely to be the tip of the iceberg, as this sort of fraud often goes unreported.

Imaginative fraud

It was often the case in matters where I was appointed as a panel deputy, that a family member had redirected funds to themselves in some way. Some were subtle: money would be taken as 'fees' for time and effort put into care, or gifts being made to other family members.

Others were more overt: houses cleared and sold and the proceeds never finding their way to the person who actually owned them. And more often than not, the cash was long gone and therefore difficult to trace and impossible to get back.

One of the more creative situations
I have seen involved a man who kept the fact that his mother owned a property hidden from the local authority, and had her placed in a care home funded by social services when she was discharged from hospital.

He then let the property out, collecting the rent 'cash in hand' and keeping it all for himself. This matter did in fact get as far as being investigated by the police, with the son called in for an interview, but that was all. After my appointment, the tenant was removed and the house sold, but the son did manage to complain that I didn't let him come and select contents for himself as part of the process!

What can we do, then, when people are so intent on taking advantage (or accelerating their 'inheritance'?)

How to be pre-emptive

The Office of the Public Guardian has released standards for professional deputies, which, particularly where properties are concerned, act as a useful reminder about how to ascertain ownership and preserve the asset.

The steps that should be taken forms one of my favourite things

(a checklist).

• Who owns the property? Not every application that is made to the court will necessarily contain precise or accurate detail. If the local authority is applying for a panel deputy to be appointed, they may have an address on file, but won't always have checked the ownership before filling in the COP1A.

• Who has access? Do you need to visit and/or secure the property?
  I am a big fan of going to the house and peering through windows. If you arouse the suspicion of neighbours, then all to the good - they are often an excellent source of information. Having the locks changed is, in the majority of cases, the only way to
  be certain no-one else can get in.

• Is the property occupied? On what basis? I'm not suggesting that joint owners or dependents of the client should be banned from living in their own home. Do bear in mind though that if the property is tenanted, you need to trace the rental payments.

• Is the property furnished? Do you need to list the contents? You may find a valuable antique in a property, but even where contents appear to have no re-sale value, what happens to them can be very important to the client and their families.

Carrying out a search at HM Land Registry and actually visiting the house to see what state it is in and whether anyone is living there, will ensure that you are in a position to remove unauthorised occupants, or uncover attempts to sell as quickly as possible.

And while I realise I sound paranoid in my belief that someone may be trying to take advantage of clients,
the KPMG report indicates a serious fraud problem in the UK that we all need to be aware of. 

Sofia Tayton is a partner and head of care and capacity at Lodders Solicitors

She writes the regular in-practice article on care and capacity for Private Client Adviser