Financial Tips For Protecting Loved Ones With Dementia
Today in the U.S., at least 5 million older Americans are living with dementia.[i] And over 15 million people are providing unpaid caregiving services for those affected by Alzheimer’s or other dementias.[ii] As loved ones’ conditions worsen, independently managing their own financial lives becomes a challenging task. Their decreasing cognitive abilities mean they may no longer have the judgment and know-how to protect themselves from scammers or ensure they pay bills on time. By advocating for their wellbeing, you can help maintain their financial health. Here are some immediate steps you can take:
- Look for Warning Signs
An important first step in helping loved ones with dementia is recognizing when they start having difficulty navigating their finances. From managing their bank account to staying on top of monthly bills, a variety of responsibilities can become difficult once dementia sets in. If you have loved ones developing dementia, you can help them protect their wealth by looking for the following signs[iii]:
- Difficulty using correct amount of money to pay a cashier
- Issues with balancing checkbook
- Redundant bill payments
- Forgotten bill payments
- Organize Their Financial Documents
If your loved ones are still mentally capable of addressing their finances with you, open up this conversation today. Organizing a financial life requires you to address various components, including will details, bills, and insurance policies. Doing so will help your loved ones manage their financial responsibilities before they’re unable to support this process without you. Details to address can include[iv]:
- Identifying their wishes for their financial care.
- Understanding their insurance coverage for long-term-care services.
- Clarifying their total sources of income and any financial gaps they may have.
- Managing any monthly or ongoing bills for which they are responsible.
- Protect Them From Scammers
The elderly are prime targets for financial scammers. One study revealed that 37% of older adults have been victims of financial abuse—losing an average of $36,000 per person.[v] And people with decreasing cognitive abilities have a 33% greater chance of becoming the victim of a financial scam. Those living with dementia are vulnerable to third-party exploits and caregivers taking advantage of them, among other crimes.[vi] You can help protect your loved ones from becoming a victim by taking steps such as[vii]:
- Putting a “no solicitation” sign on the front door of their house.
- Sorting mail to pull out anything suspicious.
- Monitoring phone calls.
- Registering their phone number with the “Do Not Call” list.
The steps you take today to protect your loved ones with dementia can make a real difference in their safety and financial standing. If you would like to discuss how to best oversee their financial lives, we are happy to help. Please contact us and we’ll work with you to identify the best steps for managing your family’s unique financial needs.
[i] https://jamanetwork.com/journals/jamainternalmedicine/article-abstract/2587081?widget=personalizedcontent&previousarticle=2587084
[ii] https://www.alz.org/facts
[iii] https://www.dementiacarecentral.com/caregiverinfo/managing/finances/
[iv] https://www.alz.org/national/documents/brochure_moneymatters.pdf
[v] http://time.com/money/4568088/elder-financial-fraud-rising/
[vi] https://www.cnbc.com/2017/08/25/elder-financial-fraud-is-36-billion-and-growing.html
[vii] http://www.aarp.org/home-family/caregiving/info-2017/dementia-care-home-safety-tips-ag.html
