Managing and protecting finances
Question from Alzheimer’s Care Partner Community: My father is fairly far along. Areas of concern right now are preparing for late stage disease and managing his finances which were left in a very disorganized state.
This task can take a while, so set aside a dedicated time when you can work on a few items from the list each time. Although it may require a lot of time and mental effort, managing finances is crucial to protect your loved one's financial security, prevent potential exploitation, and ensure their healthcare and daily living needs are met. Here are the steps to organize their finances:
1. Gather Information: Collect all financial documents, including bank statements, bills, investment statements, insurance policies, wills, and any legal documents. You'll need a clear picture of their financial situation.
2. Legal and Medical Documents: Ensure that they have a power of attorney and a healthcare proxy in place, naming a trusted individual to make financial and medical decisions on their behalf. In some cases, it may be necessary to petition the court for conservatorship or guardianship if the individual is unable to manage their finances and there's no power of attorney in place.
3. Consult an Attorney: Consider consulting with an elder law attorney who specializes in issues related to aging and legal matters. They can help with legal documents, such as a living will, durable power of attorney, and guardianship if necessary.
4. Create a Financial Plan: Establish a budget that considers their current and future expenses, including healthcare costs, in-home care, or long-term care facilities.
5. Banking and Bill Paying: Simplify their banking by consolidating accounts, reducing the number of credit cards, and setting up automatic bill payments when possible. Consider having a trusted person (with power of attorney) oversee their finances. Regularly review bank and credit card statements to identify any irregularities or unauthorized transactions.
6. Protect Against Scams: Educate yourself and others involved in their care about common scams targeting vulnerable individuals with dementia. Be cautious of unsolicited calls, emails, texts or mail requesting money. This is unfortunately becoming more and more common via text, where people living with dementia are targeted.
7. Manage Investments: If they have investments, consider simplifying their portfolio to reduce risk. Consult a financial advisor to make informed decisions.
8. Plan for Long-Term Care: Investigate options for long-term care, such as Medicaid or long-term care insurance (which can be quite expensive), and make appropriate financial arrangements.
9. Document Everything: Keep detailed records of all financial transactions and decisions made on their behalf. This documentation may be needed for legal and tax purposes.
10. Stay Organized: Use a filing system or digital tools to organize financial documents, legal papers, and medical records for easy access.
11. Regular Family Discussions: Keep family members informed and involved in the financial management process. This can help prevent disputes and ensure everyone is on the same page.
12. Seek Professional Advice: Consult with financial advisors, accountants, and social workers experienced in elder care to provide guidance and support.
13. Secure Important Documents: Keep original documents, such as wills, insurance policies, and deeds, in a secure location, and provide copies to those responsible for their care.
Remember, the key is to act in the best interests of the person with Alzheimer's, ensuring their financial security and well-being while protecting them from financial exploitation. It's important to seek legal and financial advice specific to your situation, as the laws and regulations regarding financial management may vary by location.
To find a lawyer who specializes in elder care check the Online Directory of National Academy of Elder Law Attorneys
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