Financial advisors are well versed on the statistics regarding prevalence of dementia among older adults, how cognitive impairment increases the risk for wealth loss due to poor decision making, and increases the risk for financial exploitation. But what do you actually do when you suspect your older client has cognitive impairment? Below are practical steps you can take to protect your cognitively vulnerable clients from wealth loss and financial exploitation.
Step 1 Use the “Know the 10 signs” from the Alzheimer’s Association to determine if your client is showing signs of cognitive impairment.What is great about this resource is that for each sign of dementia, it describes what is a typical age-related experience and when it is cause for concern. The National Institute on Aging also provides helpful information regarding cognitive aging and dementia.
Step 2 You believe that your client is showing some of the “10 signs.” Prepare to hold a conversation with your client where you voice your concern. Again the Alzheimer’s Association offers a terrifc step-by-step resource that can help you plan for this conversation, including conversation starters. Role playing ahead of time can help increase your comfort in initiating this challenging topic and responding to possible reactions.
Step 3 During that conversation, recommend that your client make an appointment at their local Alzheimer’s Disease Center, typically affiliated with a university medical school. These centers have clinicians and staff who are highly experienced in testing for dementia. They will provide a comprehensive memory evaluation, often at no-to-low cost. Request a follow up appointment with your client once they’ve completed the evaluation and received a diagnosis.
Step 4 If your client is diagnosed with cognitive impairment, recommend that they be assessed for their current level of financial autonomy by a certified geropsychologist. This step is important for reducing your client’s risk of wealth loss due to impaired decision making. The financial vulnerability assessment will ascertain in which areas of financial management your client can still maintain autonomy and in which areas they need help. This assessment should be repeated periodically, especially when your client cognitive impairment becomes more pronounced or they are diagnosed with a more advanced stage of the disease.
Step 5 During subsequent meetings with your client, check for red flags of financial exploitation and undue influence. Is your client socially or physically isolated? Have they suffered a recent bereavement? Are they dependent on another for their care? Is the caregiver overly protective or domineering? Does your client appear fearful or distressed? Is there a change in their appearance or hygiene? This step is essential for your cognitively vulnerable client because if financial abuse is present, often emotional and physical abuse also are occurring.
Step 6 If your client is being exploited or unduly influenced, or guardianship is required, contact the National Academy of Elder Law Attorneys. They can help find an elder law attorney who can be an advocate for your client.
Step 7 Know who to contact for emergency assistance. For dementia-related crises, call the Alzheimer’s Association’s 24-hour helpline. In the extreme event that your client has lost everything due to financial exploitation, the United Way 211 helpline will connect your client to important basic services such as housing and utilities, veteran’s assistance, food, even dental care and assist with financial stability.
Other useful steps include:
- Develop a relationship with your local Alzheimer’s Association chapter. Not only can they answer your dementia-related questions, they also provide local support groups for people living with dementia and their caregivers, give free classes on Alzheimer’s disease and ways to reduce your risk, and will happily give you free fact sheets and handouts, such as the “Know the 10 signs” mentioned above.
- Periodically check the National Institute on Aging This is a fantastic resource on a variety of aging-related topics beyond cognitive impairment. The NIA also has dozens of free fact sheets, pamphlets, and booklets on different aspects of aging, which you can download and have on hand for your clients. These publications range from healthy diet tips to advance care planning.
- Encourage your clients to pursue a healthy lifestyle.Research has shown that people who exercise regularly, get 7 – 9 hours of sleep on a regular basis, drink alcohol in moderation, and who do not smoke significantly reduce their risk for dementia. By reducing their dementia risk, they also decrease their risk for financial exploitation due to cognitive vulnerability.
Poor financial decision making and behaviors can be an early sign of cognitive impairment. Financial advisors are uniquely positioned to serve as first responders. By following the steps above, you can protect your cognitively vulnerable clients.
