**Managing Finances with Alzheimer’s: A Guide to Legal Updates**
Alzheimer’s disease is a condition that affects memory and cognitive skills, making it challenging for individuals to manage their finances. As the disease progresses, people with Alzheimer’s may experience changes in their financial behaviors, such as missing payments, making impulsive purchases, and falling prey to scams. It’s essential to take proactive steps to protect their financial well-being and ensure that their banking and financial information are updated legally.
### Understanding the Impact of Alzheimer’s on Finances
Alzheimer’s disease can start 20 years or more before noticeable symptoms like memory loss appear. During this time, individuals may experience difficulties with tracking monthly bills, maintaining a budget, and performing basic math calculations. As the disease progresses, they may struggle to understand bank statements and other financial documents, leading to missed payments and increased susceptibility to financial scams.
### Legal Steps to Update Banking and Financial Information
1. **Power of Attorney**: One of the most critical steps is to establish a power of attorney. This legal document allows a trusted person, known as the attorney-in-fact, to manage the person with Alzheimer’s financial affairs. It’s essential to discuss this option with the individual while they still have the capacity to make decisions. The National Institute on Aging recommends that a will should also be put in place to ensure that the person’s wishes are respected.
2. **Automatic Bill Payments**: Setting up automatic bill payments for regular expenses can help ensure that essential bills are paid on time. This can be done through the bank’s online platform or by working with a financial advisor.
3. **Budgeting**: Creating a simple monthly budget together with the person with Alzheimer’s can help them stay on track. This can include listing all income and expenses and identifying areas where adjustments can be made.
4. **Financial Advisor**: Working with a financial advisor who has experience in Alzheimer’s planning is crucial. They can help manage investments, pay bills, and make financial decisions on behalf of the individual.
5. **Sibstar: A Tool for Managing Finances**: Sibstar is a flexible debit card and app designed to help families living with dementia manage everyday spending securely. It allows users to load money onto the card and manage how and where it is used through the app. This tool can provide reassurance and confidence that the person’s money is protected while they continue to enjoy their daily activities.
### Practical Tips for Family Members
1. **Start the Conversation**: It’s important to approach discussions about financial management with respect and empathy. Starting these conversations early can help everyone work together to protect financial well-being while maintaining dignity and independence.
2. **Monitor Financial Activities**: Regularly monitoring financial activities can help identify any issues early. This includes checking bank statements, credit card bills, and other financial documents for any discrepancies.
3. **Educate Yourself**: Understanding the basics of taxes, budgeting, and debt management can help you make informed decisions about the person’s finances. This knowledge can also help you avoid common pitfalls like falling prey to scams.
4. **Seek Professional Help**: If you’re unsure about how to manage the person’s finances, don’t hesitate to seek professional help. Financial advisors, healthcare providers, and attorneys specializing in Alzheimer’s planning can provide valuable guidance.
### Conclusion
Managing the finances of someone with Alzheimer’s requires a proactive and collaborative approach. By establishing a power of attorney, setting up automatic bill payments, creating a budget, working with a financial advisor, and using tools like Sibstar, you can help ensure that their financial well-being is protected. Remember, early intervention and open communication are key to maintaining their independence and dignity.
