When someone has dementia, they become vulnerable to scams and financial abuse because their ability to make sound decisions diminishes over time. To protect them, obtaining a **durable power of attorney (POA)** is a crucial step. This legal document allows a trusted person to manage the individual’s financial and medical affairs even after they lose the capacity to make decisions themselves.
The process begins by having an open conversation with the person diagnosed with dementia while they still have the mental capacity to understand and consent. It is important to choose someone they trust completely, often a close family member or a professional like a solicitor, to act as their attorney-in-fact. The durable power of attorney must be explicitly durable, meaning it remains valid even if the person becomes incapacitated, unlike a regular power of attorney which ends when incapacity occurs[1][2][4].
There are two main types of POA relevant here: one for financial matters and one for healthcare decisions. The **durable financial power of attorney** covers banking, bill payments, investments, property transactions, tax matters, and government benefits. The **medical power of attorney** (sometimes called healthcare proxy) authorizes the agent to make decisions about treatment, medication, care facility placement, and end-of-life care when the person cannot communicate their wishes[1][3].
If the person with dementia has already lost the capacity to sign documents, options become more complicated. Courts may appoint a guardian through emergency guardianship, or family members can seek to become conservators. These processes are often time-consuming and costly, which is why early planning is emphasized[1].
Once appointed, the attorney-in-fact is legally bound by laws such as the Mental Capacity Act to act in the best interest of the person with dementia. They must respect the person’s wishes, keep finances separate, and avoid any self-dealing or exploitation. If abuse or neglect is suspected, family members can petition the court to revoke the power of attorney and appoint a guardian or conservator instead[2][3][5].
Because dementia progresses gradually, timing is critical. Experts recommend setting up a power of attorney immediately after diagnosis, while the person can still participate meaningfully in the decision. This proactive step helps prevent scams and financial abuse by ensuring a trusted person has legal authority to intervene when needed[4][6].
In summary, to protect someone with dementia from scams, it is essential to establish a durable power of attorney early, choose a trustworthy agent, and understand the legal responsibilities involved. If incapacity has already occurred, legal guardianship may be necessary, but early planning is the best safeguard.
Sources
https://www.jameslwest.org/the-conversation-no-one-wants-to-have-legal-and-financial-planning-after-a-dementia-diagnosis/
https://www.carterbells.co.uk/services/wills-trusts-probate/wills-trusts-probate-guides/when-to-hand-over-power-of-attorney-a-gentle-guide-for-dementia-sufferers-and-their-family/
https://keystone-law.com/power-of-attorney-obligations-to-family-members-explained
https://askchapter.org/magazine/senior-health-wellness/senior-financial-assistance/how-does-power-of-attorney-work-for-elderly-parents
https://www.lawdepot.com/us/estate/power-of-attorney-form/
https://azuraliving.com/activation-of-your-poa-faqs/
