Reference no: EM133067595

Question - Lucy Park is 65 years old. She has recently lost her husband John (who was 70) to pneumonia. Lucy currently has a defined benefit pension which pays her $2,000 per month. She lives in Wollongong and her home is worth $500,000. Lucy also inherited $150,000 from her parent's estate 5 years ago - this is all invested in Blue-chip shares and was acquired prior to the introduction of capital gains tax. Lucy has re-invested the dividends on the whole portfolio. John's estate includes a reversionary pension worth $200,000 (Lucy must draw the minimum each year, which is currently 4% or $8,000). Lucy thinks that she will need about $35,000 (total from all sources) each year to live comfortably. Lucy has never had her own financial planner, she used to visit Donny McLaine with John (who was their financial planner) but never felt that Donny took her seriously when she was in the meetings, talking only to John even about her share portfolio and pension rather than to her.

Lucy's son Tom is married to Yvonne, they are both 30. Tom works as a fly-in-fly out worker at The Front Mine in Western Australia as an engineer, earning good money.

Yvonne is currently expecting their first child so she has ceased working for the next 12 months.

Yvonne rang your office and made an appointment for Lucy to see you as she too does not like Donny McLaine's attitude towards Lucy. Yvonne attends the first meeting with Lucy for moral support, but you notice bruises on Lucy's arm and she will not look you in the eye. Yvonne is doing all the talking and insists that they update Lucy's estate planning documents right away and make Yvonne a power of attorney and enduring guardian. Yvonne also tells you that Lucy she should sell her home and move to a retirement village, gifting the left-over money to Tom and Yvonne.

-This is your first meeting with Lucy, what questions could you ask Lucy to understand her situation better?

-You suspect that there may be elder abuse in the relationship between Lucy and Yvonne/Tom, what steps/action could you take to ensure that Lucy is not being abused by either Tom or Yvonne?

-You phone Lucy 2 days after your initial meeting and ask her if she can come to the office on her own as you would like to follow up on some information and clarify issues. Explain why you might do this and what questions you might have ready to ask Lucy?

-Yvonne phones the office later in the day, angry that you have asked for a second meeting without her being there. What might your response to Yvonne be?