FINANCE
Emerging world confronts change The Covid-19 pandemic and its lingering after-effects appears certain to fundamentally change how we work, consume, travel, interact and socialise. JUSTIN SCATTINI predicts deep and far-reaching implications for a range of sectors and industries.
I Law has remedies for the financial abuse of elders Elder abuse is a scourge in our society and it’s often brought on by “inheritance impatience”, writes DON MACPHERSON.
S
adly, the abuse of our elders usually comes from a child or grandchild, who prevails upon them to provide them a benefit. This has the effect of diminishing the resources of the elderly person often at a time when they can least afford it. The abuse can be direct, such as simply taking money from an account to which the younger person has been given access to assist the elderly person. Often the bank accounts are cleaned out, or slowly whittled away, by the trusted child or relative. It can be subtle and indirect, such as manoeuvring the elder into financial transactions that are unsuitable for the elder, but which are of great benefit to the younger person. This might be loans on little or no interest to assist with purchasing a property or investments in the younger person’s business, with limited prospects of repayment. One example we have recently come across in the latter category was a child arranging for a parent to purchase a property in joint names, as joint tenants,
rather than as tenants in common. Properties purchased as joint tenants (as is the common practice with married couples) upon the death of one of the co-owners automatically go to the survivor. The transfer occurs regardless of any statement in a will, effectively passing outside the will. When the joint tenants are a parent and child, the likelihood is that the child will survive the parent, and thereby inherit the whole property. Where there are other children, that arrangement can have the effect of benefiting the joint tenant child disproportionately in comparison with the other children. There are remedies available through the law to protect against elder abuse, and in many cases to undo transactions that have been entered into inappropriately, but these matters are complex, and time is always of the essence. Visit sunshinecoastelderlaw.com.au or call 1800 961 622.
n order to develop a sense of how consumers’ lives changed through the depths of the lockdown and in its immediate aftermath, and what they perceive lies in the future, we commissioned a survey of more than 500 Australians. Survey participants represented the country’s demographic distribution across age, gender and employment status. The vagaries of Covid-19 have led us to consider a tactical rather than longterm strategic footing for the moment. The results of the survey have drawn elements of that positioning into question, such as should we re-think the relative depth of our consumer discretionary exposure versus consumer staples? Furthermore, should we increase our exposure to the likes of Viva Energy Group and Ampol, for which the survey results were positive? Nearly 50 per cent of respondents expected to fly less, both domestically and internationally, after restrictions ease, and 68 per cent will not fly internationally without a vaccine. A driving holiday or staying at home were preferred to flying domestically or internationally for the next vacation. We see these results as negative for air travel and supportive of our Lighten rating on Sydney Airport, and a positive for driving holidays, which is supportive of Ampol, Super Retail Group and Viva Energy Group. Somewhat surprisingly, only a small number of people expected to visit shopping centres less, with the average
visitation also expected to fall only slightly. We view this as positive for retail landlords, as we had expected a more dramatic shift given how they are priced. Our preferred retail-exposed REIT is GPT Group. There was almost a 50 per cent increase in the number of people expecting to work from home (WFH) at least one day and the average number of WFH days a week was expected to increase from 0.9 to 1.3. This is negative for office landlords, although it needs to be balanced against the likely need for increased space per worker to adhere to social distancing requirements. Consumers are expected to shop online for food more post COVID-19, yet surprisingly intend to also eat out more frequently. We had expected a result showing food retail gaining share from cafes and restaurants. This feedback has mixed implications for Coles and Metcash. Despite already enjoying a WFH boost, consumers intend to spend more on technology (45 per cent), and gardening and hardware (33 per cent), which is supportive of Officeworks and Bunnings (Wesfarmers), JB Hi-Fi and Harvey Norman. It will be interesting to see how consumers respond top the new normal over the coming months and possibly, years. It will certainly impact all of our investment decisions in the medium term. Justin Scattini is a senior financial adviser at Ord Minnett Buderim. Visit ords.com.au/contact/buderim
Practical Common Sense Legal Advice for you and your loved ones Premier Legal Advisors for: • Estate Management • Wills • Estate Disputes
• Retirement Village Contracts • Protection from Elder Abuse • Elder Law
WE OFFER VIDEO CONFERENCING VIA LAPTOP OR MOBILE Call now Sunshine Coast
25.indd 3
1800 961 622 | www.sunshinecoastelderlaw.com.au | Maroochydore and Birtinya August 2020 / YOUR TIME MAGAZINE 25
23/07/2020 11:53:35 AM
