Sadly, according to the National Center on Elder Abuse, almost 90 percent of the financial abuse committed against older Americans are at the hands of someone they know and trust. That’s why choosing the right financial caregiver for yourself or loved ones is more important than ever. So, what is a financial caregiver?
The role of a financial caregiver can fluctuate, but in general, a financial caregiver will:
- Help you with day-to-day finances and assist you in planning for future financial needs
- Identify benefits for which you may be eligible like:
- Tax reductions or home energy assistance for senior homeowners
- Extra help paying for prescription drugs
- Reduced fares on public transportation
- Be vigilant about protecting you from financial exploitation
- Establish relationships with your bank and other professionals
Use these seven tips to help choose the right financial caregiver for yourself or your loved ones and prevent potential elder financial abuse.
- Delegate someone you trust to make financial decisions. If you are unable to facilitate financial transactions, carefully choose a trustworthy person to act as your agent in all financial matters.
- Know who is in your home. Conduct a thorough background check on all individuals you hire for personal care or home care services. Check references and credentials before you let them into your personal space.
- Never sign something you don’t understand. Consult with a financial advisor or attorney before signing any document that appears suspicious or unclear.
- Understand the terms of assigning a Power of Attorney. Granting someone POA gives them the authority to act and make decisions on your behalf, including managing and having access to your bank and other financial accounts. Make sure you fully understand the terms and conditions of consenting a legal agent before you do so.
- Always trust your instincts. Exploiters and abusers are very skilled. They can be very charming and forceful in their efforts to exploit you. Don’t be fooled – if something doesn’t feel right, it may not be.
- Safeguard your personal information. Shred old bills, junk mail, bank statements and other personal documents you no longer need. Leaving unwanted personal documents around the house could lead to the misuse of your information. If you come across keepsake documents, opt to store them in a locked cabinet or safe deposit box at your nearest bank.
- Keep personal items out of plain sight. Lock up checkbooks, credit cards and other monetary instruments to prevent unauthorized use.
For more fraud prevention tips, read National Cybersecurity Awareness Month: tips and tricks to protect yourself.
Have someone in place to handle your affairs if you can’t.
Accidents or declining health can create a problem in anyone’s financial life, and if there’s nobody to manage your money when you can’t, the problem is magnified. For those seriously disabled—physically or cognitively—with no financial caregiver with legal authority to act on their behalf, the courts will appoint a conservator or guardian. That’s why it’s important to be prepared for the worst, and have someone in place who you’ve chosen, rather than someone designated by the court.
As strange as it sounds, by choosing a financial caregiver, you demonstrate to your lawyer, banker, and others that you’re fully capable of making sound financial decisions. In turn, this will make it easier for your caregiver to work on your behalf. Learn more about how to prevent elder financial abuse through these free Safe Banking for Seniors resources available from the American Banker’s Association.
