Colliton

posal for a new investment is reasonable or recognizing fraud, can diminish earlier. In fact, and here is one shocking conclusion, the authors stated the ability to process new information and make sound financial decisions, can begin to decline as early as in the 30’s.

There are, of course, those among us who might say, tongue in cheek, that many younger people do not begin to develop sound financial judgment until they are in their 20’s or 30’s (and for some people never) so

there might be a very narrow window of opportunity.

There are now tests to measure financial capacity and for some elder law attorneys and financial advisors this might be an exciting development. We often realize there are some people, regardless of age but especially as we age, who handle themselves just fine for day to day living but should not make complicated investment and financial decisions.

Guardianship is too serious a limitation. But there is a need for some assistance. With tests available,this might be one objective way to assess who needs assistance.

Another factor, of course, is finding a reliable and honest person, often a trusted family member or a financial advisor or financial institution.

Here are some recommended tips, according to www.nextavenue.com (in abbreviated form).

“1. Spend time making a spending plan when you retire, which will include where to draw money from, how to invest, whether to downsize or use home equity, and what might be left for the kids. You might do this when you make your wills and estate documents.

2. Involve the (adult children) and any other people (from whom) you

seek financial advice when you make the plan.

3. Document the plan and share it with family and trusted advisers who may help you later on.

4. After age 75, make sure both members of a couple and a trusted adviser…know about the plan and have access to the account… to monitor for fraud.

5. Before age 75, agree on a process for transferring responsibility for managing money (in the event of death or disability…) and make sure both (spouses) know how to run the household’s finances…”