A Challenge for the Times – Money and Memory Issues
Derrick Kinney
The increasing prevalence of dementia diagnoses such as Alzheimer’s disease is affecting more families in America. Family members must confront a wide range of issues, from determining when someone is no longer capable of driving, to identifying suitable caregiving options to managing financial affairs.
Financial matters can become particularly complex. Ideally there would be time to prepare a strategy in advance and take the appropriate steps to make sure all is in order. Any planning that can be done ahead of time can make things easier for everyone involved.
Looking for signs
It isn’t unusual for issues related to dementia to first come to light if a person begins to have difficulty managing financial matters. That could mean failing to pay bills on time, losing track of funds coming in and going out or even making erratic decisions about their money.
As a person’s inability to manage finances becomes more evident, other family members need to approach this issue delicately. It is best to frame any help in the context of “lending a hand,” not with the implication of taking control of their financial lives.
One important step that should happen well in advance is to designate a person or persons as “power of attorney.” A general power of attorney gives the designated person the ability to act as principal for another, including opening or closing financial accounts. By having a durable power of attorney designated in advance, family members won’t need to seek court approval to establish a guardianship over financial affairs.
Planning steps to consider
If a person who is beginning to face issues related to dementia is working with a financial advisor, that professional should be contacted, and a meeting can be held to discuss the circumstances. It makes sense to review all financial assets owned by the individual who has memory issues and make sure all are properly titled.
Determine sources of income, including Social Security and pensions, and make sure a structure is in place so that all payments are directed to the right accounts.
Insurance is another major thing to think about. Be sure all policies are identified and proper beneficiaries are named. Ensure coverage is in place to meet the needs of the individual who is sure to require additional medical attention in the years ahead.
Prepare for the costs of caregiving
Careful planning is also needed to prepare for expenses related to ongoing care of an individual who is diagnosed with a form of dementia. Over time, care needs will most likely become more significant.
These are among the many issues that should be laid out in advance, ideally while a person who faces challenges with dementia is still able to be part of the discussion.
Derrick Kinney is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Arlington, Texas. He specializes in fee-based financial planning and asset management strategies and has been in practice for 20 years. To contact him call 817-419-6001. The primary office is located at 700 Highlander Blvd, Suite 335 in Arlington, Texas or visit www.DerrickKinney.com.
Ameriprise Financial and its representatives do not provide tax or legal advice. Consult your tax advisor or attorney regarding specific tax issues.