1. Protect Finances Early
- Limit access to funds that can be easily misused
- Remove or monitor credit cards and debit cards
- Reduce daily withdrawal limits
- Remove or restrict online account access (banking, investment apps, email)
- Freeze their credit with all major bureaus to prevent fraud
- Set up account alerts for unusual transactions
- Consider consolidating accounts to simplify oversight
2. Notify and Coordinate with Advisors
- Inform financial advisors, banks, and CPAs of the situation
- Add a trusted contact person to financial accounts
- Ask institutions about fraud monitoring protections
- Confirm who has authority (agent under power of attorney, trustee, etc.)
- Document communications to create a clear record
3. Ensure Legal Authority Is in Place
Confirm (or create while capacity remains):
- Durable Financial Power of Attorney
- Healthcare Power of Attorney / Advance Directive
- Revocable Trust (if appropriate)
- Review who is named as agent or trustee—ensure they are still the right person
- If documents are not in place and capacity is diminished, you may need to consider guardianship or conservatorship
4. Reduce Risk of Scams and Exploitation
- Limit exposure to phone, email, and mail scams
- Add call blocking or spam filters
- Remove from marketing lists where possible
- Educate caregivers and family on common scam tactics
- Consider supervising or restricting large purchases or donations
- Monitor for sudden changes in spending behavior
5. Address Safety and Daily Living Concerns
- Use tracking tools (e.g., AirTag in shoes, jacket, or bag) to prevent wandering risks
- Install home safety features (locks, alarms, stove shut-offs, doorbell cameras)
- Ensure medications are properly managed
- Consider a medical alert bracelet
- Evaluate whether in-home care or assisted living is appropriate
6. Create a Family Plan
- Identify who is responsible for:
- Finances
- Medical decisions
- Day-to-day care
- Keep a shared list of:
- Accounts and contacts
- Medications and doctors
- Legal documents
- Set expectations early to avoid conflict later
7. Document Everything
- Keep records of:
- Financial decisions
- Conversations with institutions
- Changes in mental capacity
- This protects both the loved one and the person helping them
Key Takeaway
The earlier you act, the more options you have. Once capacity is lost, planning becomes more expensive, time-consuming, and court-driven. Proactive steps protect your loved one’s money, safety, and dignity.