Memory Loss—Not Money Loss

One of the hardest things in life is to lose someone we love to Alzheimer’s disease or another form of dementia. In this slow-motion tragedy, the partner who once was so strong or the parent who took care of us simply disappears.

Dementia doesn’t just devastate families, either. When the family money manager loses the ability to understand money, it can devastate finances as well. How can you help keep your loved ones safe, and safeguard the assets your family will need in the future?

If you believe that a family member is at risk, there are things you can do now to help form a safety net.

Share the Burden
One person should never be responsible for an entire family’s finances. (That’s a good rule of thumb at any point in life.) Get involved:

• Pay bills, review statements, etc. with your partner.
• Find out where your parents keep their important financial documents and who their financial professionals are.
• Check with the bank to make sure that bills are not being paid more than once.
• Become a co-signer on a checking account.
• Look into online banking and bill-paying to standardize as many financial activities as possible.
• If the person is willing, obtain a power of attorney for all money matters.

Be Vigilant
You can find the ten early detection signs of Alzheimer’s disease online. Thanks to the work of the University of Alabama at Birmingham’s Alzheimer’s Disease Center, I’d add an 11th: Confusion over money. UAB researchers believe that financial capacity is one of the key activities of daily living.

Watch for unusual financial behavior. Ask questions if you think something might be wrong. Be diplomatic; you don’t want to take away anyone’s independence or dignity.

Unfortunately, your loved one’s attorney or accountant might not be able to provide information on a client’s behavior, as they are bound by the dictates of confidentiality.

Don’t Wait for a Diagnosis
When you do your long-term estate planning, keep the following indicators in mind:

• The risk of developing Alzheimer’s doubles every five years after the age of 65.
• After 85, the risk approaches 50 percent.
• People who had parents or siblings who developed this disease are more likely to develop it themselves.
• Health issues (head trauma, heart and circulatory problems, diabetes, etc.) increase the risk of dementia.

Let’s Work out a Plan
If you or someone you know is faced with this situation, I can help you find resources such as long-term care policies, Medicaid planning and more. I work with a network of professionals who can help you establish medical and durable powers of attorney or create and update wills and living wills. Let me know if I can provide a referral.

There are many stories of families who lost their assets when the family breadwinner lost his or her understanding of how to handle money. But these stories are not inevitable. Allow me to help you protect your family’s finances when dementia strikes.