How to protect a loved one in cognitive decline from financial harm

Caring for an elderly family member with dementia can be heartbreaking and difficult in so many ways.

Caring for an elderly family member with dementia can be heartbreaking and difficult in so many ways. One of the hardest tasks may be protecting them from ruining their finances as their condition deteriorates. Research shows that those with dementia often show signs of financial trouble years before diagnosis. Left unchecked, their unpaid bills, gratuitous spending or willingness to give money away whenever asked can drain their savings and push them into debt. Just one unnerving example: CNN Investigates discovered that elderly adults with dementia unwittingly donated millions of dollars over the past five years to political candidates in response to a constant barrage of emotionally charged fundraising requests. To prevent or spot the kind of situation that can devastate a person’s finances requires that you be both observant and proactive about putting up financial guardrails to minimize your loved one’s temptation to extend themselves. Don’t assume that a dementia diagnosis — or any diagnosis that can eventually lead to cognitive impairment — means your loved one is currently incapable of managing their financial affairs or is willing to sign over control of them to you or anyone else.