If you are helping an older loved one to manage their finances it is inevitable that you will face some hurdles along the way. A lot of the hurdles that have recently popped up for family members that are helping an older loved one take care of their financial responsibilities are actually there for a good reason. Fraud and financial abuse have become more and more prevalent over the last several years and some of the things that can seem like big hassles for those of us that are trying to do the right thing are actually there to help protect people.
If we look at it in this light, those hurdles are not bad at all. They are strong measures being taken to combat a very serious issue. But, by knowing what kinds of hurdles we can expect, we can effectively prepare ahead of time, reducing the amount of stress and inconvenience we experience.
Dementia is one of the most difficult components of managing a loved one’s finances. When someone has advanced dementia, like what we see with someone who has been living with Alzheimer’s disease for a few years, they are unable to safely make decisions on their own. FINRA–the government agency in charge of monitoring banks and financial authorities–has passed regulations over the last few years that are designed to help seniors suffering from dementia stay safe. One of these rules allows seniors to select an emergency contact that the bank can get in touch with if there is suspected fraud or if bank employees believe that someone is no longer able to make financial decisions on their own. This emergency contact can’t make transactions for the individual, but they can act as a safeguard to help protect this person.
This is where things can get tricky. If you are not formally designated to help manage someone’s finances, then when the need for care might arise, paying for it could trigger some of the safeguards designed to help protect the elderly. For example, if you have an older parent who is moving into a nursing home and you help with the payment to that nursing home, there’s a chance that the bank could see this as a possible sign of trouble and freeze the account. This is a headache that no one wants to deal with, especially if the need for care is urgent. It could mean bounced checks, frozen cash, and many other issues.
Again, knowing that this is a possible issue ahead of time can help you to prevent it from happening in the first place. Speak with a customer service rep at your loved one’s bank and have them explain their policies while your mom or dad is with you. Get the paperwork signed that you need to ahead of time. Speak with an attorney to make sure things look right. It can be time consuming, but it will ensure that things are a lot less complicated (and even more time consuming!) later on.
Life is not perfect, and finances are one of those areas that deeply expose this rift between the way that we would like things to be and the way that things actually are. Being prepared can help make this difficult time a little easier.
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