As loved ones gets older, it's common for health issues to impact various aspects of their daily lives, creating challenges to their independence and quality of life.

Mental impairments, which include conditions affecting memory, reasoning, judgement, and other cognitive abilities, are a significant concern for older adults, according to the National Institute on Aging. Among these, dementia alone affects an estimated 6.9 million U.S. adults age 65 or older, as reported by the Alzheimer's Association (2024). 

If you have a loved one experiencing mental impairments – such as difficulty handling complex tasks, planning or organizing, or experiencing significant memory challenges beyond simple forgetfulness – it might be time to assist with finances.

Our team at Trust Point has worked to transition financial oversight for many clients, working one-on-one with them and their families to meet their needs and provide peace of mind. Though it can be an emotional and difficult process for families, there are steps you can take to make the shift easier for everyone. 

We go above and beyond just investment management and look out for the overall care of our clients and their family.

Get Involved Early

Nobody wants to talk about the possibility of changes in cognitive abilities and their impact on financial management with family. But waiting until a serious health issue occurs will make the situation more challenging and stressful for everyone. 

We encourage younger generations to thoughtfully begin discussions with their loved ones early. We also urge older clients to introduce their children or the next generation of decision makers to their investment managers while in good health.

Parents don't want to be a burden and certainly don't want to think about losing their independence. But, it is very important to have these conversations so you don't miss the window when you can appoint somebody that you trust to make the right decisions.

Establish Power of Attorney

Financial power of attorney is a very useful document that allows someone to step in and make financial decisions on another's behalf when they are no longer able to do so. Many people don't realize that including a financial power of attorney is an essential part of an estate plan.

It's important not to take that appointment lightly, because with the financial power of attorney, there are many financial transactions that the person you name as attorney-in-fact can transact for you. If you haven't named a financial power of attorney, you might fall into a place where nobody is able to help you with your finances without going through the court and having a guardian appointed.

Use Empathy

If you find your loved one is having trouble with their finances, be empathetic. It's important to address the situation, but to do so it is equally important to be patient and kind. Take small steps, keep them involved and simplify the process where possible.

For example, you might suggest shifting bill pay from paper to online transactions. See things from their point of view, offer to lend a hand, make suggestions that make life easier. Avoid angry conversations or simply telling your loved ones what to do.

Consolidate Assets

It's important to understand the scope of a loved one's financial assets and consolidate them if possible. This will make things easier from a tax reporting standpoint and simplify overall management. Trust Point has extensive experience in asset consolidation and can help with this.

Update Their Will or Trust

If a parent or loved one is having memory issues, it's critical to make sure that their will or trust is up to date so it's clear what happens to their assets when they pass.

They've worked hard for that money and you want to make sure that it is distributed to the people and organizations that they want, and not necessarily based on what state law says. 

Also be aware that retirement and insurance plans are transferred based on beneficiary designations, not necessarily what a will or trust says. When reviewing assets it's good to include those things to understand the entire financial picture.

Protect Against Fraud

Adults experiencing cognitive challenges are especially vulnerable to scams, which are most prevalent through phone and email campaigns. Talk with your loved one regularly to make sure they haven't been involved in any suspicious conversations or transactions.

Leverage the Experts

Taking on financial management for a loved one can mean a lot of things, from organizing routine expenses, such as utilities, to managing investments. It's important for those helping their loved ones not to take too much, or feel obligated to manage anything they are uncomfortable handling.

Perhaps you are comfortable with paying bills, maybe setting up weekly meetings with your loved one to go through the mail and keep them involved. Investments, cash flow planning, or organizing tax records – on the other hand – might be outside your wheelhouse.

Don't be shy about leaning on the professionals at Trust Point, or any attorney or other professional depending on the subject matter, for guidance. Trust Point even offers bill paying services that direct all of a client's bills to your address.

We are here to be your trusted partner, connecting you with the resources you need and helping you find the best solution. We go above and beyond just investment management and look out for the overall care of our clients and their families.

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Trust Point

Address: 7 S. Dewey St., Eau Claire

Phone: (715) 461-7018

Website: trustpointinc.com

Download Trust Point's complimentary Information Organizer here

 

 

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