Clients with Alzheimer’s

Today 5.4 million individuals suffer from Alzheimer’s, and that number is expected to jump to 16 million by 2050. Financial advisors should take a proactive approach when it comes to planning for a patient who may be at risk of being diagnosed with the disease by discussing the client’s potential for dementia early on in the planning process.

For clients with Alzheimer’s, a simple power of attorney and other healthcare decision-making and financial documents may not be enough. Many individuals with the disease deny the fact they have a problem, and will often hide things, making proper estate and financial planning difficult.

Another difficulty that can come with planning for a client with Alzheimer’s is the potential for a family member of caregiver to take advantage of the client. Not only should advisors work diligently to protect their client’s interests, but they should also protect themselves by documenting that they discussed long-term life insurance with their client. A list of steps advisors with Alzheimer clients should follow is below:

• Consult the Alzheimer’s Association’s resources at www.alz.org and on the 24-hour hotline staffed by trained specialists (1-800-272-3900).
• Consult your firm’s legal or compliance office.
• Initiate conversation with clients early about planning for the financial implications of a disease like Alzheimer’s.
• Ensure clients have POAs or other legal documents for financial and healthcare decision-making.
• Consider augmenting POAs with reporting or “open records” requirements, for example, ensuring multiple siblings share accountability for the client’s finances.
• If appropriate, discuss long-term care insurance with clients and document conversations.
• To assist with memory issues, document meeting agendas and provide notes for clients to take home.
• If concerned about undue pressure on your client from an outside source, try to speak with the client alone to evaluate the situation.
• If needed, slow down the process and consult legal or compliance officers to determine if reporting to law enforcement is warranted.
• Educate yourself about elder care resources such as geriatric care managers and continuum of care facilities.

For more information on working with Alzheimer patients, see Amy Burroughs, When Your Client Has Alzheimer’s, Registered Rep. Aug. 30, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.