By which time it's often too late and the money has disappeared and/or been spent.
And of course, it's much better for some of the money to disappear into a government department even though there's no suggestion that the relative is doing anything wrong.
But you could apply that basic argument to dozens of situations. Perhaps we should all get permission from a government-appointed agent each time we want to visit the bank to make a withdrawal or deposit, and pay massive annual fees for the oversight, just in case we decide we're going to rob the place one time? After all, by the time we're captured afterward the money could have disappeared, couldn't it?
Not sure what the fuss is here. Most people are able to draft a financial power of attorney before they ever become incapacitated anyway.
The fuss is yet another scenario in which the government is assuming that everyone is guilty until proven otherwise, and penalizing the majority for the actions of a few. And maybe most people
are quite capable of having a financial power of attorney drafted before they become mentally incapacitated, but that's not going to help the rest, is it?