Navigating Financial Decisions for Alzheimer’s Patients: Key Steps
Concerns about financial management often arise for families dealing with Alzheimer’s disease, especially when reckless spending becomes an issue. In a recent inquiry, a family sought guidance on how to cancel credit cards for a relative diagnosed with early-stage Alzheimer’s.
According to Carolyn McClanahan, a physician and fee-only financial planner based in Jacksonville, Florida, the approach to managing finances hinges on the patient’s cognitive capacity. If the individual can comprehend the implications of their financial behavior, McClanahan recommends that the couple consult with his doctor. The doctor can explain to the son-in-law why it is crucial for his wife to take over financial management.
If the son-in-law consents, they can draft a power of attorney document that grants the wife legal authority to manage financial matters. McClanahan advises involving an elder law attorney to ensure the process is handled correctly. Should the bank resist recognizing the power of attorney, an attorney can provide a formal letter urging compliance.
In cases where the son-in-law lacks capacity, the wife may still be able to withdraw funds from their joint account to protect their assets. Additionally, she can cancel the credit and debit cards to prevent further unauthorized spending. While seeking court intervention to become a conservator is an option, McClanahan cautions that this route can be costly and disruptive. Engaging an elder law attorney early in the process could help the family avoid such complications.
Every adult should have powers of attorney in place for both financial and healthcare decisions. McClanahan emphasizes that it is vital to establish these documents before a health crisis arises. Waiting until a situation has escalated can lead to unnecessary stress and complications.
In another inquiry, a reader expressed concerns about a family member’s online behavior regarding privacy. This couple is apprehensive about their mother-in-law’s social media habits, which they believe could lead to identity theft. Despite their efforts to maintain privacy, the mother-in-law frequently shares personal information about the family on her accounts.
The reader notes that older generations may not fully grasp the risks associated with oversharing online. Liz Weston, a certified financial planner and personal finance columnist, highlights that children are particularly vulnerable to identity theft, cyberbullying, and other online threats. The mother-in-law’s desire for attention does not outweigh the family’s need for privacy and protection.
Weston suggests that the husband might assist his mother in adjusting her privacy settings to limit potential exposure. A face-to-face discussion may also be beneficial, allowing the couple to explain their concerns directly. It is advisable to frame the conversation using inclusive language, such as “we” statements, to avoid placing blame.
The couple should clearly articulate the consequences of continued oversharing. Depending on their relationship dynamics, the husband may need to take the lead in this discussion. If the mother-in-law continues to disregard their requests, the couple may have to consider limiting contact or withholding updates about their children.
Addressing both financial management and online privacy for family members with Alzheimer’s or other vulnerabilities is crucial. Involving professionals and maintaining open communication can safeguard their well-being and protect personal information in an increasingly digital world.
