Protect loved ones with dementia from financial exploitation
UNPAID bills, overpaying or underpaying for service provided, not having any recollection of purchases or payments made, inability to account for money, as well as not making the effort to collect monies owed, are some of the telltale signs that a loved one may be experiencing the onset of dementia. This condition exposes them to risk of financial exploitation.
As cognitive decline is a feature of dementia, the support of a partner, adult children, or other relatives and friends become critical, as a person with dementia is unable to make sound decisions regarding the management of money.
One woman related that when her 74-year-old mother was diagnosed with dementia three years ago she immediately took steps to safeguard her mother’s finances following an incident at an automated teller machine (ATM).
“One day she went to withdraw funds from her account and she couldn’t remember what to do. Someone saw her confusion and came into the booth to assist her. Luckily, that person was honourable. I took every [banking] card from her,” she disclosed, adding that she only allows her mother to have no more than $1,000 at any time to take care of small expenses.
According to the World Health Organization (WHO), about 50 million people worldwide have dementia and there are nearly 10 million new cases annually. The WHO also pointed out that dementia is one of the major causes of disability and dependency among older people globally.
Claudine Allen, member ombudsman at the Jamaica National Group and general manager of the JN Foundation, urged people with loved ones who are beginning to show signs of dementia to start a conversation with them about the future management of their finances.
“It becomes increasingly difficult for persons with dementia to make prudent financial decisions. Unfortunately, unscrupulous persons take advantage of such situations and that is one of the reasons older persons tend to become victims of scams. They sometimes lose their life savings this way,” she explained.
Allen pointed out that when loved ones begin to show signs of being unable to do certain banking activities, which they previously managed with ease, intervention is immediately required.
She outlines the following tips for caregivers to safeguard the finances of people with dementia.
* Check bank accounts, confirm the balance and people who have access. Look out for fixed deposits and long-term investment accounts.
* Establish a standing order arrangement with the loved one’s financial institution to take care of monthly obligations, such as mortgage payments
* Keep track of banking transactions by using an online banking portal or by visiting the financial institution.
* Arrange for pension payments and other income to be received in a bank account, which is easily accessible.
* Keep all their financial documents, such as insurance policies and credit card statements, in waterproof packaging and store them in a safe place.
* Monitor debit and credit card usage. You may also consider reducing the credit card limit to decrease exposure in the event that something goes wrong.
* Maintain their independence by allowing them to have some money to keep, even a small amount.
* Identify a responsible, trustworthy individual to make all important payments, such as mortgages, utilities, etc, if possible.
Allen underscored that where possible, people with dementia should be involved in the decision-making process when it comes to expenditures, and caregivers should ensure that they are comfortable with the arrangements.
“It is important to preserve their sense of usefulness. This can be achieved by allowing them to keep small sums of money and allowing them to take care of small transactions,” she advised.
The member ombudsman further advised that a part of the conversation regarding the management of their finances is the preparation of a will, if one has not already been done.
“Many times, people associate making a will with death. It is always advisable to make a will, regardless of your age, so that your wishes concerning your estate can be upheld. Furthermore, making a will helps to safeguard one’s assets,” she affirmed.
Allen also urges caregivers to pay attention to preserving the quality of life of people with dementia and to ensure that they receive the proper medical attention necessary to remain in good health.