Individuals grappling with Alzheimer’s disease or related dementia often encounter difficulties managing their finances, and research indicates that money problems can be among the initial noticeable signs of the disease.

Early in the disease progression, individuals may handle basic tasks like paying bills, but complexities such as balancing a bank account become challenging. As the disease progresses, individuals might try to hide financial challenges, lacking awareness that their capability to manage financial matters is diminishing.

Indicators of Money Problems

Watch for signs of money-related challenges such as difficulties counting change, paying for purchases, calculating tips, balancing a checkbook, or understanding a bank statement. More indicators to be cautious of include overlooked and unpaid bills, an increase in new purchases reflected in credit card statements, unexpected additions of items in the home, and funds missing from the person’s bank account without a clear explanation.

Family members or legal representatives ought to consistently examine bank statements and financial records to confirm that the individual with dementia is handling their finances responsibly, safeguarding them from potential financial abuse or fraud.

Proactive Measures

While many older adults may resist relinquishing control of their financial affairs, several steps can be taken to provide support while respecting their independence:

1. Initiate a Conversation: Start a dialogue about the importance of a monthly budget. Assist the person in developing a spending plan, utilizing paper or secure online budgeting tools if comfortable with technology.

2. Automate Bill Payments: Establish automated bill payments for utilities, mortgages, rent, and additional expenses. Automatic deductions from a bank account guarantee the accurate and timely payment of bills.

3. Manage Spending: Discuss ways to manage spending, such as providing the person with small amounts of cash, reducing spending limits on credit cards, and canceling unnecessary credit and debit cards. Provide support with grocery shopping or consider exploring delivery alternatives to reduce excessive spending.

Legal Arrangements for Financial Affairs

As the disease progresses, it may become necessary to take charge of the person’s financial affairs through legal arrangements. Ensuring a respectful and understanding transfer of financial authority is essential. Individuals can secure permission to oversee finances by establishing a durable power of attorney for finances, preferably while the person is still capable of comprehending and approving the arrangement.

To get started, consider the following steps:

1. Establish Consent: Consider appointing a legal representative, a proxy, to access and manage the person’s financial affairs. While a lawyer may not be required, they can offer guidance if needed.

2. Plan for Long-Term Care Costs: Consider possibilities for in-home support, such as a personal care assistant or home health care aide. Evaluate the costs and investigate whether Medicare, Medicaid, or long-term care insurance can provide coverage. If the person needs additional care, explore residential facilities such as assisted living communities or nursing homes.

3. Gather Important Papers: Collect the person’s vital records and documents, including birth certificates, insurance information, banking records, wills, and any health care or financial directives. This guarantees the fulfillment of their wishes and streamlines the process of organizing their affairs.

Guarding Against Financial Abuse and Fraud

Individuals with dementia are susceptible to financial abuse and scams, which can be perpetrated by strangers, friends, or family members. Different scams, such as identity theft, schemes promising quick wealth, and scams involving impersonation of government officials, may pose a threat to them.

Look for signs of financial abuse or fraud, such as discrepancies in signatures, changes in legal documents without permission, unauthorized property sales, and missing valuables. To mitigate the risk of telemarketing schemes, consider registering the person’s phone number on the National Do Not Call Registry. Moreover, consider investigating the registration for fraud alerts with banks, credit card companies, national credit bureaus, or alternative credit monitoring services.

For further assistance, individuals can seek legal advice and resources to navigate these financial challenges effectively.