Alzheimer’s is one of our nation’s costliest diseases. According to the Alzheimer’s Association, total health care, long-term care and hospice payments related to Alzheimer’s disease and other dementias will total $236 billion in 2016. Sadly, afflicted individuals without adequate long-term care insurance frequently lose most, if not all, of their financial assets.
But even dementias’ beginning stages and mild cognitive impairment experienced by healthy seniors can put personal wealth at risk. That’s why it’s important to begin having conversations about your aging family member’s finances well before you see signs of mental decline. Obviously, this has to be done with great sensitivity and respect. Make sure they know you don’t want to take control, but you would like to ensure they are protected and their wishes honored in the years to come.
During ongoing dialogs, try to learn what you’ll need to know if it becomes necessary to manage their finances: the names and contact information of their financial planner, accountant and attorney; financial records and where they are kept; their monthly income and the sources; insurance policies; the location of financial accounts; regular bills and how they are paid; and log-in information for online accounts.
Suggest meeting jointly with their financial advisor and/or other family members. Gain an understanding of their priorities. Ask which assets are most important to them, which causes they want to support and whether their will is up-to-date.
Propose having legal documents created that will allow you or another family member to make decisions if your loved one becomes unable to. This can include: a health care power of attorney (POA) or a more limited living will, either a limited or durable power of attorney for finances, an authorization to disclose account information and a form authorizing a financial institution to contact you if concerns arise about their ability to manage finances. Not having these documents when they’re needed can make helping your elderly relative considerably more difficult. For example, without a POA, you may need to go to court to attain guardianship of your family member to access accounts on their behalf.
A financial advisor can provide more information on protecting your loved one or help you create a plan to care for them.
Written by Securities America for distribution by Jose “Rafi” Rodriguez, Retirement Income Certified Professional®. Securities offered through Securities America, Inc. Member FINRA/SIPC. Jose R. Rodriguez, Financial Consultant. Advisory Services offered through Securities America Advisors, Inc. An SEC Registered Investment Advisor, Jose R. Rodriguez, Investment Advisor Representative. Rodriguez Financial Strategies LLC and the Securities America companies are unaffiliated. SAI#1654763.1