Detecting Financial Incapacity in Seniors

Recently the SEC, NASAA and FINRA published a report to help advise financial professionals in detecting signs of diminished capacity among older investors.
Some of the "red" flags they noted are

•  The Senior seems unable to process simple concepts
•  The Senior appears to have memory loss
•  The Senior appears to have difficulty speaking or communicating
•  The Senior appears to be unable to appreciate the consequences of decisions
•  The Senior makes decisions that are inconsistent with his or her current long-term goals or commitments
•  The Senior’s behavior is erratic
•  The Senior refuses to follow appropriate financial advice
•  The Senior appears to be confused about missing funds when reviews suggest there have been no unauthorized money movements at all.
•  The Senior is unaware of, or does not understand recently completed financial or legal transactions
•  The Senior appears to be disoriented with surroundings or social setting
•  The Senior appears uncharacteristically unkempt or forgetful.
•  The Senior appears frightened or nervous around family or friends who are helping with finances.

Reacting to these signs requires compassion and a complete understanding of the financial, social and physical environment surrounding the Senior. Seniors with no responsible family support should be referred to an appropriate government agency such as Adult Protective Service or the Office of Public Guardian. Seniors with responsible family support need for you to discuss your observations with the responsible family member and recommend steps to take in protecting the financial well-being of the Senior. Always carefully document your observations and retain that information to protect yourself and your practice.

Very often a Senior will turn a trusted person, in an attempt to preserve their financial independence and personal dignity. You must be able to observe compassionately but with wisdom and always try to do what is right for the Senior. In many cases it is best to involve the professional services of a Daily Money Manager - like those provided by The Caregiver Foundation of America.

For more information on protecting the financial lives of Seniors contact

The Caregiver Foundation

at thecaregiverfoundation@yahoo.com or telephone 808-625-3782
The Caregiver
Foundation of America - a 501(c)3 charitable organization helping you help those you love.
Helping you help those you love

Saturday, January 3, 2009