Introduction

The Hong Kong population is aging. The number of people aged 65 and above is projected to increase from 11.2% in 2001 to 27.6% of the total population in 2036 (HKCSD 2007). As the population ages, the number of people with cognitive impairment and consequent decision-making disabilities will increase. In addition, older people are living longer and are likely to experience a range of health and functional problems as they age. Greater longevity means that financial assets will need to be managed over a period of time when opportunity to regenerate an asset base can be reducing while the likelihood of impairments that affect capacity to self manage is increasing. Conserving assets, prudent management of these assets, and appropriate assistance to manage are thus essential in ensuring well-being, dignity, and choice in older age. Older people’s assets are managed within complex environments where the interests of the state, service providers, the family, and older people themselves can be in conflict (Tilse et al. 2005b). Australian research (Tilse et al. 2005a; Setterlund et al. 2007) shows that such assets are managed within the context of expectations of inheritance, established patterns of intergenerational transfers of care and money, and attitudes toward older people and their assets. This mix of need, expectations, and access to assets may increase tensions and the potential for misuse and financial abuse.

Informal carers, primarily family members, play a major role in assisting older people to manage their assets. In a national prevalence study in Australia, one in four Australians reported having assisted an older person with managing their assets in the previous year (Tilse et al. 2007). Asset managers are primarily family members who assist mostly parents and parents-in-law in managing day-to-day tasks such as paying bills, accessing money, and completing paperwork or longer-term management of investments and property. This type of informal caregiving is embedded in family and cultural values about money and entitlement to assets. It also operates within legal and financial service systems rather than health and social care systems.

Where others become involved in making decisions about older people’s assets, these decision makers operate either informally or within a framework of legal instruments such as enduring powers of attorney. Many countries have enacted legislation to provide decision makers with legal authority to act as substitute decision makers in the event of incapacity. In Hong Kong, the Enduring Powers of Attorney Ordinance (Cap. 501 of the Laws of Hong Kong) was enacted in 1997 “to create a special type of power of attorney which would be executed while the donor of the power was mentally capable but would take effect after the donor became incapable” (Stoker 2008). The Law Reform Commission of Hong Kong, however, notes the concerns regarding the low take-up rate of the Enduring Power of Attorneys (EPAs) in Hong Kong (HK 2009). In many situations, people manage assets informally using access to the older person’s assets such as joint bank accounts or sharing expenses while cohabitating. Such informal access can be the basis for the illegal or improper use of an older person’s property or finances (McCawley et al. 2006).

Financial abuse is reported to be the fastest growing form of elder abuse in many countries (Podnieks 1992; Wasik 2000; Rabiner et al. 2004). Such abuse is generally perpetrated by family members. Appropriate legislative and policy and practice responses to this abuse require an understanding of the practices associated with the management and use of older people’s assets and the social and cultural context in which it occurs. This includes attitudes toward older people, inheritance, intergenerational transfers, and the control of money.

Currently, there is very limited understanding of the practices, experiences, and perspectives of nonprofessional asset managers and older people who have their assets managed in Hong Kong. The project reported in this chapter sought to address this gap and make comparisons, where appropriate, with the findings from Australian research.

The Hong Kong Context

Hong Kong is growing rapidly in population terms, with much of this growth coming from migration rather than local population growth (Shen and Dai 2006). This growth puts pressure on housing and other social and health infrastructure to meet the needs of its citizens. The roles of government, nongovernment organizations, the private sector, and families in responding to these increasing needs are under review (Wong 2008; Wong et al. 2010). In the context of meeting the needs of older people, families have been a major source of financial (Chou 2008; Chou et al. 2004) and practical support underpinned by strong Chinese traditional values of filial piety. This contrasts with legislated requirements on families to provide such assistance. There has been a significant decline in fertility rates leading to much smaller numbers of family members to support older members in the future (Chou et al. 2004). A time of rapid social change raises questions about how families can continue to provide a high degree of economic and social support to older and younger family members.

The Australian and Hong Kong Studies

The Hong Kong research project funded by CADENZA is explicitly linked to an Australian research program (2002–2007) exploring nonprofessional asset management and older people in Australia. Three Australian projects relevant to this chapter are an Australia-wide prevalence survey, semistructured interviews with nonprofessional asset managers assisting older people, and in-depth interviews with older people who are receiving assistance with asset management.

The Hong Kong project used the same definitions of asset management and similar data collection instruments as the Australian studies, adapted for the different social, cultural, and policy context. The project comprises a territorial-wide telephone survey conducted in Hong Kong from mid-2010 until mid-2011 to explore the prevalence and nature of nonprofessional asset management, semistructured interviews with asset managers who were assisting older people with their finances, older people having their assets managed, and professional workers (social workers, doctors, financial advisors, and lawyers).

For the purpose of these studies, older people are considered to be those aged 65 years or older. Nonprofessional asset management is defined as having control over organizing, decision making, and/or the use of an older person’s assets. This includes day-to-day management of finances such as paying bills, banking, cashing checks, and completing paperwork and longer-term management of investment and property including accessing financial advice. Participants are considered a nonprofessional asset manager if they had engaged in at least one of these tasks on behalf of another older person during the previous 12 months. Assets include all an older person owns that has commercial value such as land/properties, cash, bank savings, investments in stocks and shares, and other readily realizable assets. An older person’s equity in a home or family business is also considered an asset.

Methodology

This chapter draws on the population survey to describe patterns and trends and the semistructured interview data with asset managers and older people to provide an in-depth understanding.

The Population Survey

This study aimed to explore the pattern of elder financial asset management in the Hong Kong context. Using a territorial-wide telephone survey, 1,942 Hong Kong Chinese adults (1,344 females and 598 males) who reported to have offered assistance in managing the financial assets of an older person during the past year are identified out of 3,505 surveyed respondents. They were surveyed on the nature of their financial asset management services provided to their elderly family member(s) and rationales for older people to receive their assistance. Key limitations of the sampling approach are the overrepresentation of women in the sample and limitation of fixed telephone line surveys that exclude mobile telephones.

In the survey, 55% of surveyed respondents were involved in some level of asset management for an older family member. Theses asset managers were on average aged 46.11 (SD  =  15.55), with most (47%) between the ages of 41 and 60 years. Slightly more than half of the respondents (53%) were reported to reside in the New Territories, followed by the Kowloon Peninsula (29%), and the Hong Kong Island (18%). Most surveyed nonprofessional asset managers were women (63%) providing assistance to primarily their parents and/or parents-in-law (76% for parents and 21% for parents-in-law). Nearly two-thirds (62%) were assisting only one older family member, with the remaining helping two (30%) or more (8%) older family members. In this survey, half of the sample (50%) were found to complete their secondary education while more than one-third (36%) of them were educated at a level of tertiary or above. Unsurprisingly, these asset managers were predominantly white-collar workers, with 27% of them executives or professionals and 21% administrative or customer service-oriented personnel.

Out of the 1,942 nonprofessional asset managers, 649 respondents (33%) were the sole provider of assistance to their older family member. The remaining respondents shared this responsibility with another family member. Asset managers who were the only service provider to their older family member were on average older (M = 50.17, SD = 16.10) than their counterparts (M = 44.04, SD = 14.84). It is noteworthy that nearly a quarter (24%) of the sole asset managers were homemakers. Asset managers who were not the only service providers, on the other hand, were mostly executives and professionals (29%).

Similarly, older women (69%) were reported to be primary recipients of asset management services. These older people were on average 77.38 years (SD  =  8.10), with most of them between the age of 65 and 75 years. A large proportion of their incomes came from the financial support of their children (67%). Additionally, more than half of the older people (53%) were recipients of government-funded allowances. These older people who required assistance to manage their assets were minimally educated. More than two-thirds (72%) of these older people were below elementary education level (i.e., elementary schooling, irregular Chinese schooling, or no education at all). Slightly more than one-fifth (21%) had reached at least the secondary education level. In Table 5.1, it is of interest to note the disparity in education level between asset managers and those being assisted.

Table 5.1 Characteristics of asset managers and persons assisted (in survey)a
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In this survey, older people were reported to need assistance primarily because of limitations in health (36%), a lack of confidence in doing it themselves (31.5%), cognitive problems (6%), and problems with communication (5.8%). Health problems were more likely to be cited as the reason for assistance for people aged over 76 years; a lack of confidence was more likely to be reported for people aged 65–75. Asset managers assisted older people with asset management through providing financial information and advice (55.5%), executing a decision or direction of the older person (45.8%), and making decisions (34%) on behalf of the older person. The vast majority of asset managers reported no difficulties in helping older relatives manage their assets. Those (13%) who reported experiencing difficulties identified them as being a result of the complexity of the financial matters to be managed, the elder’s dissatisfaction with the decision made, and/or family pressure and conflicts regarding their role as an asset manager.

Interviews with Asset Managers and Older People

In order to understand asset management practices within families, including practices which protect the interests of older people and those that pose a risk for the older person’s finances and well-being, the experiences of three groups were sought: family members or friends assisting an older person; older people receiving assistance with their finances; and professionals who have close contact with older people in community, residential, medical, and financial settings (Table 5.2). In Australia, participants were recruited through material distributed through older people’s organizations, clubs, and community and residential services in South East Queensland. In Hong Kong, participants were recruited through community and residential services and professional networks. A similar semistructured interview guide was used in both contexts.

Table 5.2 Sample description and size of semistructured interviews
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In both the Hong Kong and Australian studies, no attempt was made to pair respondents by interviewing asset managers and the older people they assist. The asset managers and asset managed samples are therefore independent. The descriptive data related to the assisted older people was supplied by the asset managers themselves.

The small sample size (16) of asset managed in Hong Kong reflects a number of difficulties with recruitment. First, it was difficult to find older people who are both receiving assistance with management of their finances and able to participate in a research interview as many older people who receive assistance with their finances have a level of cognitive impairment. Second, it was difficult to recruit older people who were willing to discuss their personal finances. It proved to be exceptionally difficult to recruit older people with considerable assets. Data from professional workers suggest that cultural taboos surrounding discussion of money may inhibit discussion of finances and inheritance in families. For example,

The children will come to us and say, “I think there is some sort of taboo in face of children talking about it (inheritance) … Well, you know, it’s like we are really prodigal to talk about that with our mother. It’s like we are embezzling her.” You know the Chinese saying: “Good children are not greedy for their parents’ money” It exists (No 1, Social Worker HK).

A reluctance to disclose the value of personal assets was evident in some of the interviews with older people. For example, when asked the value of her assets, one older woman, who reportedly has property and other assets, simply replied:

I don’t want to tell you (Asset managed no 2).

Third, it appears that many of those asset managed older people who did agree to be interviewed misunderstood the topic, equating being assisted with managing their finances by a family member with being assisted financially by family members. As a result of the recruitment difficulties, the Hong Kong sample of asset managed older people is smaller than anticipated and is skewed toward lower-income status. The Hong Kong asset managers’ sample has greater socioeconomic variation than the asset managed sample, based on occupation as a proxy for income level.

In the Australian study, 34 older people being assisted with their finances were recruited for the asset managed sample. Recruitment difficulties were also experienced in this context. Cognitive impairment was a major factor in limiting participation. Despite the recruitment difficulties encountered in both contexts, the data does provide important insights into the practices and experiences of asset management from the perspective of older people themselves. Table 5.3 describes the subsamples.

Table 5.3 Asset managers interviewed
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The majority of asset managers in both samples are women, are currently married, have completed at least secondary education, and are living in a home that they own. Most participants are (or were) engaged in professional occupations or managerial positions, clerical and sales. Most asset managers were assisting parents, parents-in-law, or other relatives. The Hong Kong sample differed from the Australian sample in the age range and the rate of second marriages. Only one participant in Hong Kong was in a second marriage that had produced children, in contrast to 20% (n  =  16) in the Australian sample.

In the Hong Kong sample, 19 older people being assisted were born in Hong Kong; two were born in Macau and six in China (two not recorded). Table 5.4 shows the level of schooling is quite low with just one participant having reached senior high school, and 12 participants reported as not attending school. Of those 12, seven are described as illiterate. However, being illiterate does not necessarily mean that the older person cannot understand their finances. For example,

Actually she did not know how to write. However, she remembered clearly about the income, expenses and balance every month … she could remember even clearer than me. I did not remember as clearly as her (Asset manager, no 1).

Table 5.4 Older people being assisted by asset managers
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In contrast, assisted persons in the Australian sample received more education with three-quarters having attained a senior high or primary school education. Only one person did not attend school. All are considered to be literate.

In relation to health status, in the Hong Kong sample, five individuals are reported as being physically and cognitively well, while 17 are said to have physical health and mobility problems. Only four individuals are described as having some level of cognitive impairment (as well as physical impairment in some cases), and three individuals were deceased at the time of interview. In the Australian sample, the level of cognitive impairment is higher with over one-third of respondents (36%) reported to have very little capacity to manage their finances largely due to cognitive impairment. This is also reflected in the greater number of assisted persons reported to be living in residential aged care in the Australian sample.

The Hong Kong sample has higher rates of cohabitation of older people with other family members, perhaps reflecting cultural differences, housing availability, and/or poverty. The majority of older people being assisted have low incomes. Most (89%) are receiving a government elderly allowance (mainly OAA). For the majority of older people (n  =  21), gift donations from family members are their principle source of income, while for four, a government pension is their principle source of income, largely OAA which provides $1,035 HK per month. Only seven older people are reported to have an income over $50,000 HK. Half of the older people being assisted in Hong Kong have estimated assets worth less than $100,000, while six have assets valued over $1 million (HK).

In the Australian sample, 85% are receiving government pensions or allowances, mostly earning less than $20,000 AUD per year. For 69%, a government pension is their principle source of income. No one in the Australian sample reports receiving money gifts from adult children.

Table 5.5 summarizes the characteristics of the older people interviewed. In both contexts, the older people having their assets managed were most commonly women who were widowed and who were being assisted by adult children. The most common managers were adult children, either acting alone or in combination with other family members.

Table 5.5 Older people interviewed: asset managed
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Differences between the two groups were primarily related to education, cohabitation, living arrangements, and levels and source of income. Older people being assisted in Hong Kong had lower levels of schooling than the Australian sample with a significant group not having attended school. More of the participants in the Australian sample were living in residential care at the time of interview. For those living in the community, in the Hong Kong study, almost a third (n  =  10) of older people are living with a spouse, a family member, or a family member and his or her family. Hong Kong data concerning ownership arrangements of cohabited housing show variation whether the owner is the older person, a family member, or there is joint ownership. In the Australian study, just over a quarter of older people are sharing their dwelling with someone else, usually a family member. No one who is cohabiting reported joint ownership of housing, and all but one owned the property in which he/she lived.

Data concerning the income level of asset managed participants show that in the Hong Kong sample, all are receiving OOA; only one receives the higher paid CSSA allowance for disability, and ten are receiving gift donations from family members. While three of the Hong Kong participants could or would not disclose their level of income, the available data show that only four respondents state an income over $50,000 HK. In one case, the reported level of income is over $1 million HK. In the Australian sample, the majority of respondents (n  =  30) similarly report receiving a government pension and associated low-level incomes of below $10,000 or between $10,000 and $15,000 AUD. One participant reported an income of $80–100,000 AUD. No one in the Australian sample reported receiving money gift donations from family members.

In the Hong Kong and Australian samples, asset managed older people are receiving assistance with tasks of everyday living such as meals, shopping, transport, housework, self care, as well as asset management. Assistance with the tasks of everyday living is more common in the Hong Kong sample, which may reflect the greater number of older people cohabiting with a family member. The predominance of asset management tasks shown in the Australian sample may also be an outcome of the more detailed questions in the Australian interview guide regarding different aspects of assistance with finances and/or the higher proportion living in residential care.

Data Analysis

The qualitative data have been analyzed by, first, reading and summarizing all of the transcribed interviews and, second, identifying themes, commonalities, and differences in the interview data. The qualitative data are reported in the form of summary scenarios in order to give meaningful background information. Where direct quotes from the participants are included, these are shown in quotation marks.

Experiences and Practices Related to Management of Assets

Asset management overall is activated by the perceived needs of an older person as an everyday part of caring about and caring for an older person. The following discussion focuses on the pathways to being assisted and the practices surrounding that assistance.

Pathways to Being Assisted

In the Australian and the Hong Kong samples, the main factors (alone or in combination) leading to a family member’s involvement in assisting an older person with their finances were the availability of a trusted person, a perceived need to protect the older person, increased physical or cognitive disability, close physical proximity (particularly cohabitation), or an extension of an existing caring role. In Hong Kong, illiteracy was an additional factor.

The following example illustrates how increased physical and cognitive decline, an existing caring role, trust, and proximity led a daughter-in-law to assist her father-in-law:

The father had lived with his son and daughter-in-law for approx 20 years. Father suffered a stroke 5 years ago and recently has developed dementia. Daughter-in-law manages his “basic necessities of life.” She began assisting with finances because she is trusted by the father-in-law and his adult children: “As we’ve been living together all the while, they know how I get along with my father-in-law and think I am trustworthy. Therefore, they left it to me” (HK asset manager, 4).

Illiteracy is linked to long-standing arrangements for receiving assistance with some asset management tasks that continue in older age. For example, a spouse managed respondent, who currently has mobility and memory problems as well as being illiterate, states that an arrangement for her husband to manage their money began at the time of marriage due to her illiteracy:

It is shamefully about my level. I have not finished my primary education. I let him manage (HK asset managed, 10).

In the Hong Kong sample, trust, availability, and physical proximity to the older person appear to be the main factors which influence choice of asset manager with expertise. These factors reflect the Australian sample.

The qualitative data suggest that most family members share tasks of care for the older person, while one family member will take on the role of asset management. The following scenario provides some insight into the division of care tasks for an older person:

Tasks of caring for mother and father in a family of 9 siblings are shared out: the asset manager son helps with purchase of milk & payment of medical bills, advice regarding handling of shares and pays the wages of an Indonesian carer; 3 rd youngest sister assists with regular social outings; 6 th youngest sister takes father to doctors and another one is “looking after his daily life” (whether these tasks include mother is not explored) (HK asset manager, 24).

In the Hong Kong sample, a quarter of family members (27%) have sole responsibility for management of the older person’s finances. This appears to be linked in part to the desire of older people to keep the nature and extent of their assets a secret, particularly when the older person has considerable assets. This asset managed older person discusses the arrangements he made:

No they (other daughters) did not even know I have such shares, they have no idea about my financial status and that is my personal affairs. All other daughters do not know I have shares like Tracker Fund of Hong Kong (HK asset managed, 3).

This approach is not as evident in the Australian study.

Practices Used in Asset Management

The interviews explored the tools used to manage assets in both Hong Kong and Australia. These included joint accounts, formal bank arrangements, EPAs, being appointed as an administrator or guardian, and automatic payment. The major differences between the two countries are the heavy reliance on joint accounts in Hong Kong and the much greater use of electronic banking and of EPAs in the Australian sample.

Very few asset managers or asset managed older people in the Hong Kong study have an EPA in place as a tool for substitute and assisted decision making for finances and other life matters. None of the asset managed older people has an EPA arrangement in place. One asset manager is an attorney under EPA arrangements. In contrast, in the Australian study, most asset managers and most asset managed older people reported having EPA arrangements in place.

Joint accounts or some other formal arrangements with a bank to access accounts were the most common reported tool used to manage assets in Hong Kong. Australian asset managers who used banking arrangements were more likely to set up a joint signature arrangement with a bank rather than access money through joint accounts. Joint accounts in Hong Kong appear to function like EPAs and wills. Some asset managers report setting up joint accounts first for convenience in being able to take out money for the older person and, second, to ensure that they could continue to take out money from the account in the event of illness or the death of the older person:

As it is a joint account, it is either her or me (who has access). We’ve agreed that if anything happened to her, I could take out everything in the account and the government wouldn’t be able to close the account (HK asset manager, 12).

When asked why she set up a joint account with her son, the mother being assisted replied:

I was sick before and I am afraid of having any sudden event (HK asset managed, 4).

In line with the predominant use of joint accounts and being a signatory to an account, the most common banking tools used were passbook and savings account. There is little use of electronic banking methods, credit cards, and ATM machines by or for older people in this group of Hong Kong residents. These banking tools were most commonly used tools in the Australian sample of asset managers.

Experiences of Asset Management

The experiences of helping an older person with their finances or being assisted with finances are largely reported positively. Asset management is generally seen as a part of family life. Meeting cultural expectations to care financially as well as practically and emotionally for older relatives is noted as important in the following quote:

We’ve been teaching them (children) that their parents love them and raise them up since they were born. It’s very reasonable for you to support your parents when your parents are feeble and unable. They understand it well (HK asset manager, no 1).

The respondents whose adult children provided them with a regular income all appeared extremely appreciative of this money. Family financial assistance to older parents or relatives is culturally appropriate and embedded in ideals about family reciprocity. The following comments reflect these ideals:

We are family. If one has not money and the other one has, we will not just leave the poor one without lending a helping hand, We take care of each other (HK asset managed, 1).

While social desirability factors in these interviews may have influenced the way participants discussed financial support, there was little reference to any burden this might have placed on some family members even where the financial support provided places a strain on family members. Cultural norms regarding the provision of assistance to older family members may shape experiences and behavior. However, this does not mean that families are without conflict or that asset managers do not experience difficulties in the process of carrying out their tasks. Some family members negotiate the tasks of asset management in situations of varying levels of stress.

Two-thirds of the Hong Kong asset manager sample report harmonious family relationships (n  =  18), while one-third (n  =  9) report some strain or conflict. Typically harmonious family relationships involve working together, sharing tasks, and having an agreed arrangement about provision of financial support to the older person:

The asset manager daughter and 3 siblings provide money to supplement 75 year old mother’s OAA. The siblings operate on principle of giving about one third of their income to their mother. This is given willingly and will total cooperation: “… they (family) are good to think that it’s a blessing to be able to give money to my mother” (HK asset manager, 11).

Strained family relationships increase the vulnerability of older people.

He is sometimes good and sometimes not … he loves me but he doesn’t show it … he knows that I have a bad relationship with my daughter-in-law. Once I fell and got hurt, he wanted to ask me to live with him but my daughter-in-law rejected … I don’t want to live with them. … She would talk to me in a bad manner which makes me feel bad … I like to live on my own (HK asset managed, 2).

High-level conflict where the older person is abused is less common in this sample, with three situations outlined by the asset managers. Two sisters have been in conflict regarding the care and finances of their 96-year-old mother:

The mother lived with the asset manager’s sister who “scolded and abused her at times …” The sister would tell her mother she was a burden: “she was like saying ‘you live with me. I have to look after you and to bear’.” Although this sister didn’t have to provide her mother’s cost of living (this was provide by the asset manager daughter), there were conflicts living together and the sister’s husband was jealous of the care given to his mother in law: “so her husband also treated her discourteously. He kicked her bowl when having meals. She was pathetic. So we applied (to nursing home) quickly” (HK asset manager, 10).

The following situation reveals the trauma experienced by one female participant, who now lives in a hostel:

He (husband) left $100,000–200,000 to me and my son has used it up … he got the money and lost the money through gambling in Macau (HK asset managed, 13).

On the advice of her husband, since deceased, she arranged for a niece to manage an overseas account to protect some of her remaining money.

Difficulties Experienced with Tasks of Asset Management

Overall, Hong Kong asset managers appear to find the tasks of assisting an older person with their finances straightforward, although some found the process complicated in terms of protecting the older person’s assets from access by a “risky” sibling or protecting assets from risk in the marketplace.

The difficulties reported by nine participants are relatively minor largely reflecting strained family relationships:

The asset manager daughter assisting her mother was asked by the mother to keep the amount of money in her account secret from an elder brother (one of 6 siblings) because he has a history of financial problems a few years ago. The mother is worried that this son will use the money, and according to the asset manager she “doesn’t want my elder brother to know about it” (HK asset manager, 12).

The other concern for Hong Kong asset managers is maximizing interest earnings on the older person’s money. For example, in the following scenario, an asset manager discusses the importance of minimizing risks when dealing with the mother’s investments:

I am stressed as I am worried about losing their hard-earned money, so I am not having major investment. My brothers and sisters also agree with that. I am doing it very cautiously (HK asset manager, 25).

Asset managers in the Australian sample, however, report different experiences of difficulties with the tasks and processes of asset management. The large majority (88%; n  =  76) report difficulties with the roles and tasks of asset management. Problems cited by over 20% of managers in order of frequency include the time-consuming nature of the tasks, attitudes and behavior of the managed person, family pressure/conflict or lack of support, making decisions on behalf of others, and witnessing the deterioration and pain of the older person. The level and nature of these difficulties may reflect the larger number of older people in the Australian study living with dementia or in residential care.

Level of Control over Financial Decision Making by the Older Person

Participants in both the Hong Kong and Australian studies tend to feel satisfied when the level of control exercised is congruent with their preferences and abilities. One-third of the assisted older people in the Hong Kong sample exercise a high level of control over decisions related to the management of their assets. The importance of according respect and dignity in carrying out the wishes of the older person while protecting their financial interests are common themes in the experiences reported by asset managers:

The situation involves an asset manager daughter caring for mother who has excellent cognitive capacity. According to the asset manager: “My mother makes decisions” and her daughters carry out her wishes. The daughters are careful to ensure their mother has control and that her preference for safe investments is followed. She highly values the power that this accords the older person: “It’s bliss for an elderly giving her conscientious influential power” (HK asset manager, 11).

Older people generally want control over their spending/saving.

A female participant reports:

No. He (son) doesn’t take care of how I use the money. He gives freedom for me to spend the money. Whenever I need money I tell him (HK asset managed, 4).

A female participant who is financially well-off seeks her son’s advice regarding bank matters:

We don’t interfere with each other’s decision-making … I save it (money) in the bank and I can take money out whenever I need it … he won’t (challenge me). He wants me to make the decision. He doesn’t bother with that (HK asset managed, 2).

Hong Kong asset managers note the factors which make it difficult for older people to exercise control as cognitive impairment, lack of interest, and in one case the vulnerability of the older person as an alleged victim of abuse by a sibling and her husband. However, in one situation, it appears negative assumptions made by an asset manager’s son about his father’s lack of education is a reason not to include an older person in decision making, even though the father (aged 93) has good cognitive and physical functioning:

“Even (if) I told the elderly aged ninety something with education level of grade three of primary school, he wouldn’t understand a bit. It’s to caste pearls before swine. It’s alright to make the decisions. The money will come back after all.” However, the son does “inform him if possible” about the stocks and dividends, and keeps records of transactions etc. The son feels he has done his duty in terms of assisting with finances (HK asset manager, 24).

Risk or Unacceptable Practices

In the Australian samples of asset managers and asset managed older people, there are circumstances that both restrain and foster risky practice or illegal practices. Practices that reduce risk include having more than one person involved in assisting and monitoring and keeping meticulous records.

There is no evidence of mismanagement of finances by asset managers or evidence of financial abuse of the assets of older people in the Hong Kong study. A minority of asset managers recounted past experiences where sons are alleged to have acted improperly in relation to an older person’s money or property and where sons are viewed as untrustworthy due to money problems and therefore likely to ask for money from an older person. In one situation, an older person has experienced a son taking an inheritance to pay for gambling debts. In all these situations, the asset manager (and often other family members) is well aware of the potential for abuse and has sought protection of the older person’s assets as part of their management role.

Only one situation in the asset managed sample in Hong Kong, involving a joint account, suggests risky practice occurred. The older person purchased a flat with her son under HOS. She paid the down payment and the son paid the installments:

He was not able to afford the installments later but he didn’t tell me about that. My bank account suddenly lost 17 thousand and I ask the bank what had happened. They asked me whether I had the joint account with my son. He didn’t have enough money and got the money from my account. My son didn’t tell me anything about it … I didn’t understand and my son didn’t tell me about it. The letter from lawyer informed me that the bank account has lost 17 thousands. I went to bank and asked. The bank told me about that (HK asset managed, 4).

There is no further exploration of this incident in the interview. Perhaps the older woman does not see anything untoward in her son’s behavior because he was paying for the house installments, and ultimately the house was paid for. For a minority of respondents in the Hong Kong sample, transferring money from the older person’s account to an account under the asset manager’s name alone also is viewed as a way to protect the older person’s money and carry out their inheritance wishes:

I worked in the bank and naturally she opened her first account in our bank. She was worried that all of her savings would be embezzled when she passed away, so she passed many things for me to manage when she was retired. My practice was to open a separate account under my name and the money belonged to her … we wanted to avoid trouble when she passed away (HK asset manager, 31).

The majority of respondents did not raise any concerns regarding the opportunity for children to take money from a joint account without their knowledge, based on the high level of trust in asset managers. However, comments from a few older individuals show that some are well aware of the need for caution. For example, one older person reports:

The government has now announced that when I open a joint account with my son, he can get all of my money. I am not worried about this. He has to get the bank account book to take the money … If I don’t give the book to him, what can he get? Concerning the joint account, if they get the book, they can get all the money (HK asset managed, 4).

While mismanagement is not evident in the Hong Kong study, there are a number of practices which have the potential to place the older person’s finances at risk and to place the asset manager at risk of being questioned or accused of negligent or improper handling of an older person’s finances.

Use of Joint Accounts and Transfer of Assets

The use of joint accounts as money management and inheritance management tools is commonplace. This finding may be a result of lower-income sample bias and the high number of asset managers who are making financial contributions to the living costs of the older person. In helping older people with their finances by use of a joint account, the asset manager is likely accessing the regular financial contributions made by themselves and other family members. In this context, the potential for family members to use their role as managers to “help themselves” to an older person’s money is greatly diminished. A check against any abuse is in place in that many siblings regularly visit their parent or parents and can see for themselves that the older person is living safely and comfortably (either alone or with a family member).

While there is only one example in the data of the inappropriate use of joint accounts, this arrangement affords little protection for the older person, as money may be taken out without the knowledge of the older person. As noted earlier, some asset managed older people are aware of the risks and protect themselves by keeping their passbook with them. It is not known if family members assisting older people with greater financial resources use joint accounts or if the management of considerable sums of money in a joint account provides the opportunity for misuse. This is an issue that deserves further exploration.

Transfer of assets, other than housing, is not a common occurrence. In one situation, an asset managed older person gave his shares to the daughter who is assisting him with his finances, as a benefit for the help she provides:

You must give her (the youngest daughter) some benefits so she is willing to serve you, right? So I told my youngest daughter that you contributed so much so you can have all my shares. And our living expense relies on the interest generated from the share of X Fund of Hong Kong, so I asked my daughter to give us the interest as our daily expenses (HK asset managed, 3).

While the father completely trusts his daughter, the potential is there for the daughter to misuse the funds, the interest from which is used for the living expense of the parents. This situation also involves secrecy from other children about the financial arrangements in place. Thus, there is no one other than the father monitoring transactions, which further increases the opportunity for misuse.

Record Keeping and Making Records Available to the Older Person

Systematic record keeping is more the exception than the norm in the Hong Kong and Australian studies. This is a cause for concern in terms of protecting asset managed older people from exploitation and asset managers from accusations by others of improper handling of finances. While there are cogent reasons for minimal record keeping, and little reported dissatisfaction with minimalist practices, the problems that can arise through lack of records are clearly indicated in one asset manager’s experience (no. 14), who was accused by her brother of mishandling her father’s money and changed her practice as a result to consult with and show records to her sister.

There are a number of reasons given for asset managers and asset managed older people believing there is either no need to keep records or that minimal records suffice. Many asset managers feel that because they are financially contributing to the life expenses of the older person, there is little incentive to keep a record of such transactions. Others report no need to keep records because the older person is now living in a nursing home where administration staff keeps detailed records of payments and purchases. One asset manager actually argues against keeping a record of expenses:

I think it (records of expenses/transactions) is not necessary for a large sum. You must treat them as your parents. Do you treat your parents like that? You don’t. Why do you treat your parents-in-law like that then? They are indeed your parents. Think more and you know your husband wouldn’t exist if it were not for them. I think in this way. I am not being mighty, but I don’t know why people are so anxious (HK asset manager, 4).

From the perspective of asset managed older people, trust in the asset manager, the small amount of money spent, and the fact that passbooks can be checked if necessary mean there is little perceived need to keep systematic records. For example, one participant, who has a joint account with a highly trusted daughter as a precautionary measure to ensure his assets can be accessed in event of illness or death, reports that he occasionally checks:

I checked the account from time to time. There are statements each month (HK asset managed, 3).

The need for asset managers to keep good records to demonstrate accountability for their decisions and transactions is heightened by the finding that several older people expressed a preference for keeping the appointment of an asset manager secret from other children. The importance of following an older person’s request for privacy and secrecy surrounding their finances is raised by one asset manager:

The point is to see whether the elderly wants other people to know, as many of the elderly are like this; they only want one of their children to know about it. They don’t want it open. When they become old, despite the fact that they are not thinking that you want to conspire against their money, they will feel less secured although you think it’s useless for them to have the money around … They are afraid of their money being … borrowed if everyone knows about it. They have a belief that they can have some money around even if their children neglect them. This is called security (HK asset manager 5).

In situations where asset managers are requested to keep information confidential from other siblings, there is the potential for other siblings to question the actions of an asset manager once the older person is deceased or incapacitated. Good record keeping is essential to avoid the possibility of the asset manager being accused of improper management.

Practices in Relation to Illiteracy

The lack of systematic record keeping by asset managers needs to be considered in relation to the levels of illiteracy of the older person being assisted and the level of control over decision making sought by the older person. Older asset managed people with low or no literacy often cannot sign their own name and describe using chocks or a cross mark to identify themselves on official documents, including banking transactions:

I choked the mark on the letter or I mark a cross because I don’t know any language or wordings (HK asset managed, 5).

Asset managers may discount the need for records if the older person being assisted is illiterate. It may be all too easy to overlook the need for careful explanation of financial and administrative matters where an older person has no or low literacy.

Security of Housing and Cohabitation

Data from interviews with Hong Kong professionals regarding experiences of financial abuse of older people show that older people may be vulnerable to losing their accommodation if they sign over their property to an adult child or relative. Problems arise when an adult child has ownership of the property in which they are living with the older person and the child wants to remove the older person. While no participant transferred housing ownership to the sole ownership of a child while living in the transferred house, one asset manager recounts how her father was tricked into giving his property to his son:

The father lived with son’s family and he wanted to rearrange ownership of his property after his wife was deceased, so asked his son who is a lawyer to draft the documents which: “turned out to be documents to change the apartment’s ownership to the son.” The son has been un-contactable since this incident. It was clearly against the father’s wishes as “she (daughter) once asked her father if he ever requested for such document, or he wanted to do so, and her father’s answer was ‘no’. She commented that there was no need for her brother to cheat them, as her father would sooner or later give the apartment to him, who is the only son of the family.” Father rarely talks about the incident (HK asset manager, 28).

In Hong Kong, the high cost of housing and lack of space where housing is shared between generations may motivate an adult child to secure ownership of an older person’s property and perhaps to evict that older person. The high level of cohabitation between generations and the dependency of older people on adult children and other family members for financial support and care are all factors which place an older person in a vulnerable position should an adult child plan to secure their property. Not all family situations are harmonious and/or can change over time, and in conflicted situations, the older person is extremely vulnerable to losing both financial support and accommodation.

Summary

The Hong Kong samples can be considered in relation to older people with low levels of income associated with receiving government pensions and those who had accumulated more assets. The samples do not include older people with large asset bases.

The majority of those on low levels of income, who remained in the community, were cohabiting with adult children or spouses. These living situations are associated with the positives of informal sharing of resources within the family as well as the stresses of many people living in a small space. These older people were receiving significant financial assistance from children, and these transfers were not generally understood in terms of asset management. The older people in both samples appreciated the fact that they currently did not have financial worries and had a small amount of money to spend as they wished. However, it is apparent that there are potential risks for these older people if family members considered that their needs for housing or income are greater than the older person’s in the future. The relatively high rates of illiteracy for this group may contribute to the vulnerability of these older people.

A minority of older people had assets valued at over $1 million (HK). The asset managers and the older people in this group did consider they were providing/receiving assistance in asset management. There is also evidence that this group of older people received financial assistance from their children, though this did not take the form of providing a home or meeting the basic necessities. They were involved in setting up a number of joint accounts with their children to assist in the management of their resources now and after their deaths. A number of this group was also concerned to keep knowledge of their assets relatively secret to safeguard against demands for assistance. They were more aware of the potential risk of losing assets and attempted to guard against this. Similarly their asset managers were more concerned about the difficulties they experienced in being prudent asset managers during a volatile financial period.

For both low- and higher-income groups, satisfaction with the involvement of others in the management of their assets is strongly related to the level of trust in the person assisting them, the level of control the older person had reflecting their wish to be involved, and the extent to which they felt valued as an older person. There is strong evidence that they are satisfied with the arrangements when they reflect adherence to cultural values around the respect due to older people. However, there is evidence that not all older people in the surveys were happy in the sense that they felt valued or secure. This chapter has identified a number of issues that can be seen as potential risks, particularly at this time of rapid social and economic change.

The key differences between the Hong Kong and Australian samples are the relatively low level of government support and high level of financial support from children, the relatively low usage of formal mechanisms for substitute decision making around financial matters (EPAs), the low level of use of electronic banking, and the high rates of cohabitation of older people with children and grandchildren. The largely informal system for managing older people’s assets in Hong Kong relies heavily on the quality of the family relationships and strong respect for older people. There is some evidence from this study that these factors can work well but also that the system that supports them is under increasing strain. While there were few instances of abuse in the samples of older people, it is likely that this to some extent reflects sample bias and the willingness of participants to raise such issues. The professionals interviewed had seen more cases of abuse but generally believed it did not come to public attention because of a reluctance to speak out about family conflicts. More public discussion of the risk factors for financial abuse and educational strategies to counter these factors is indicated.