Loss of Financial Capacity Associated With Dementia

When elderly family members begin to have difficulty handling finances, it can often be one of the initial signs of cognitive decline. Generally, it physicians handle this cognitive impairment, and they are not equipped to be estate planners or financial advisors. There is a big gap in this area of physician’s care to patients with dementia.

The New York Times recommends that doctors and families address these issues early when there is still something that can be done. Doctors should ask questions periodically to assess the mental acuity, specifically questions that probe at financial capacity, and then refer patients to legal experts or money management specialists if the doctor sees a decline. Doctors could also talk to families about signing durable powers of attorney, or having joint bank accounts with their beloved elders.

See Paula Span, When Dementia Drains the Pocketbook, The New York Times, Feb. 28, 2011.

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