Preparing to Face Cognitive Decline Issues

Recent studies show families are delaying or avoidingconversations about what to do when aging family members begin facing cognitivedecline issues.

According to a survey of over 2,000 adults by the NationalEndowment for Financial Education, 86 percent of adults indicate they wouldtrust a family member to make financial decisions for them in the event theyare unable to.  However, 70 percent say“their families are failing to talk about who will take control of the financesof family members who lose the capacity to make decisions for themselves.”

Warning signs of cognitive decline include paying billslate, difficulty calculating simple math problems, and irrationalpurchases.  When family members noticethese signs they should first gather information about the specific medicalcondition.  Then they should consolidateaccounts and ensure their will and power of attorney are current.  Family members should then implement a plansuch as having one member in charge of overseeing their monthly finances.  And it may be best to divide care-givingduties among those willing to take some responsibility.  Just remember to be compassionate as an agingfamily member may be afraid to relinquish control over their finances.

See Families Struggle with Cognitive DeclineIssues, Survey Says, Financial Advisor, July 8, 2013.