{"id":687,"date":"2024-03-26T08:02:47","date_gmt":"2024-03-26T08:02:47","guid":{"rendered":"https:\/\/一起草官网\/?p=687"},"modified":"2024-03-20T16:18:51","modified_gmt":"2024-03-20T16:18:51","slug":"the-elephant-in-the-family-room-diminished-financial-capacity","status":"publish","type":"post","link":"https:\/\/一起草官网\/the-elephant-in-the-family-room-diminished-financial-capacity\/","title":{"rendered":"The Elephant in the Family Room: Diminished Financial Capacity"},"content":{"rendered":"

When we think about a loss of independence, being unable to drive or live on our own often comes to mind. We may not even realize our ability to manage finances could be at risk someday. But failing to prepare for diminished financial capacity can leave us vulnerable to exploitation and abuse.<\/p>\n

Sometimes when people are in the early stages of cognitive decline, no one realizes the impact it\u2019s having \u2014except scammers. Seniors who are already confused about financial matters are prime targets for fraudulent investment schemes. By the time they or their family realize what is happening, it\u2019s often too late. People can lose most of their retirement funds and their financial security can be destroyed \u2013 along with their dreams of using their savings to make life easier for their children and grandchildren.<\/p>\n

Financial exploitation often also occurs when a senior owns a two or three family house, lives in one apartment, and rents out the other(s). Tenants sometimes take advantage of a landlord\u2019s dementia or hospital admission to stop paying rent. The landlord may not realize it, or even if s\/he does, hiring a lawyer to bring an eviction proceeding may be overwhelming. On the other hand, people with dementia may not be able to fulfill their duties as landlords either. They\u2019re likely to have trouble keeping up with the necessary home repairs, and paying the utilities and property taxes.<\/p>\n

This illustrates another common problem: asset management. A multi-family home in New York is often a senior\u2019s most valuable asset, but it requires maintenance. It should also be a major source of income. Certainly, if tenants stop paying rent, the home is no longer a source of income. But even if the tenants are paying, the rent may be stuck at the going rate a decade ago. A landlord with diminished financial capacity may not remember to renew the lease or raise the rent.<\/p>\n

The other side of this coin is debt. Bills often pile up, followed by collection notices. Even if people have the assets and income to pay their bills, it doesn\u2019t help if they no longer have the capacity to reliably do so and no one else is authorized to pay them instead.<\/p>\n

The legal system may intervene through the appointment of a \u201cguardian of the property<\/a>\u201d when people lose financial capacity and haven\u2019t prepared adequately. A guardian of the property assumes the responsibility of managing the incapacitated person\u2019s financial and legal affairs, making these decisions on their behalf. But guardianship proceedings are usually time-consuming and costly, and the person appointed may not align with the individual\u2019s preferences.<\/p>\n

Fortunately, we can maintain more control over our financial destinies even during times of diminished capacity through advance planning. Consider which of these proactive steps are right for you:<\/p>\n

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  1. Add a Trusted Contact Person to Brokerage Accounts: If your broker suspects you\u2019re being scammed or can\u2019t reach you, they can contact this person.<\/li>\n
  2. Organize & Store Financial Documents Securely & Accessibly: Inform trusted loved ones of the location and\/or provide them with copies.<\/li>\n
  3. Share Your Financial & Legal Professionals\u2019 Contact Information: Include your financial adviser, estate planning attorney, and accountant.<\/li>\n
  4. Update Financial Account Information Regularly: Include new accounts and changes in trusted contacts.<\/li>\n
  5. Ask your Lawyer about a Durable Power of Attorney<\/a>: Enable someone you trust to make financial and legal decisions if you cannot.<\/li>\n
  6. Utilize the Social Security Advance Designation: Name someone you trust to manage your benefits if you become unable to do so.<\/li>\n
  7. Review your Investment Portfolio: Ensure the risk level and allocations align with your age, financial and medical status, and potential increases in healthcare costs.<\/li>\n<\/ol>\n

    Keep in mind two caveats:<\/p>\n