No lawyers and no paperwork required.
Noticed that your loved one is having some difficulties with money? You can take a few small, simple steps to make managing money easier without any formal legal requirements1.
For those in the early stages of cognitive decline, it’s all about preserving independence while protecting against potential pitfalls. It’s also smart to start planning for the future, since cognitive decline generally worsens over time.
Talking about money can be difficult in even the best situations, and it can be particularly tough within the dynamic of an aging loved one and their adult child. But starting the conversation in the earlier stages of the disease, prior to an official diagnosis, can be the key to preventing devastating financial consequences. Research shows that household wealth can drop by over 50% in the 8 years before a dementia diagnosis2.
Ask anyone in our branch banks about how we can help. You can even schedule an appointment, if you like. Links to additional resources are also provided below for your convenience.
Sit down together with your loved one and help them set up automatic bill payments. Focus first on recurring expenses like mortgage and credit card payments.
If you are a joint account holder, you can also go with your loved one to their bank branch to set up automatic account alerts to be sent to you via email or text so you know if a balance gets low or if spending goes beyond a certain threshold.
If you or another family member lives close by your loved one, stop by regularly and ask to look over bank statements to check for suspicious charges that could be fraudulent, or any other unusual spending behavior. Also ask them about any strange phone calls, emails or text messages they may have received. The key here is regular review since fraud can happen fast, and it’s imperative to address it quickly.
Together with your loved one, review the spending limits on their credit cards. It can be smart to lower these limits, especially if you’ve observed an uptick in shopping or gambling.
Executive functioning is one of the first things impaired by cognitive decline. That can be problematic when it comes to making daily financial decisions like determining how much is ok to spend and on what items. A visible, tangible printed budget can help make it simple for your loved one to get a clear answer on how much they should spend on groceries, personal care and other essential items.
If your loved one is open to it, you could give them their budgeted amount of cash in an envelope each week. While there is a risk of misplacing the bills, a small amount of lost cash is better than a debit or credit card falling into the wrong hands.
Some banks offer access sharing services, which is different than a joint account. Depending on the specifics, your loved one can grant you access to view their accounts and pay bills on their behalf to payees they’ve set up. This way, your loved one maintains their independence and you can protect them from missing payments, mistakenly double paying or being the victim of fraudulent activity. Additionally, you may be able to place certain restrictions on spending at specific places or in certain categories.
While new discoveries in treatments for cognitive decline are constantly being made, there is currently no cure. Some treatments available may delay the progression of the disease, but the hard truth is that no one with dementia will improve; symptoms worsen over time. The steps shared here are a good place to start, but you will need a plan in place to care for your loved one in the more advanced stages of cognitive decline. You’ll want to start thinking and planning now about steps like getting a power of attorney, paying for future care and what to do about your loved one’s estate and assets.
There are caring and knowledgeable professionals who can help you along the way. You don’t have to embark on the journey alone. See below for additional resources to help guide your next steps. And remember, you can always visit your local branch and ask for assistance.
Huntington Caregiver Banking lets account owners share limited access to their accounts with people they trust, to help spot scams, manage spending, and make sure bills are paid on time. It’s an easy way to look out for a loved one while preserving their financial independence.
1 The suggestions provided in this article do not require legal action. However, these suggestions are not meant to replace medical or legal advice. We recommend working with your loved one’s medical professionals and their attorney to determine what’s best for their unique situation.
2 From an analysis of a MIT-AARP report titled “Before the Diagnosis: Dementia’s Early Financial Toll.”