It started with a COVID shot. We knew my uncle John (not his real name) was getting one and that reactions to the shot could range from nothing at all to severe side effects. So, we called to see if the vaccine was affecting him. When he answered the phone, he was extremely confused.
“Hey Uncle John, it’s Bob.”
“Glad you called. Who is this?”
“Uncle John, it’s Bob.”
“Oh, yeah. Bob. What you up to.”
“Oh, just checking on you. How’d your COVID shot go?”
“What shot? Did I get a shot? I don’t think I did. Let me look at my calendar. Well, it’s here, but I haven’t been out of the house today and…” The more he talked the more agitated he became and he was literally terrified because he couldn’t remember.
“Uncle John, look at your arm. Do you have a band-aid on it? If you do, then you had the shot.”
The conversation went downhill from there. As it turned out, Uncle John did get the shot, but he didn’t remember leaving his house driving to the doctor’s office, or driving back home. My wife and I talked to him a long time before he calmed down.
The next day we drove several hours to Uncle John’s house to make sure everything was okay because Uncle John lives alone. By the time we arrived, he had calmed down and was a bit more normal. But, oh, what we found!
On his table was a stack of bills that had not been opened. Some were almost overdue. There were requests from charities because Uncle John was sending money to many of the nonprofits he’d seen advertised on television. There were stacks of magazines that dated back two or three years. And his refrigerator was jam-packed with food; most of it was expired, spoiled, and covered in mold.
As we talked to Uncle John, we noticed he’d say the same thing several times in just a few minutes. He’d put down an item, such as a tool, and in 60 seconds he couldn’t remember where he put it. He’d even leave the stove on after he was done cooking.
Just as concerning, Uncle John told us there were days he’d go to town eight miles away to pick something up and then couldn’t remember why he was there. In fact, some days he’d go to town as many as four times and could never remember what he went for. He’d drive around town hoping it might come to him and when it didn’t, he’d go back home.
For the next year, we went to Uncle John’s every 2-3 weeks, and every time, it was the same—more stacks of unopened bills, more piles around the house, and more spoiled food in the frig. He just chuckled and chalked it up to getting old. We told other family members who lived nearby that Uncle John had all the signs of dementia or early Alzheimer’s. They laughed and said he was just forgetful.
Uncle John hadn’t done any estate planning. We had conversations with him about the need to have a Will, a Power of Attorney, and a Medical Power of Attorney in case there came a time when he couldn’t make decisions on his own. He’d agree with us while we were there, but he never did anything about it.
In the process, we also discovered that one family member was undermining all suggestions about estate planning. Knowing the state of Uncle John’s mind, the family member was manipulating him and siphoning money from him in multiple ways. The law calls that Elder Financial Abuse.
Three years later, Uncle John’s Dementia/Alzheimer’s has gotten progressively worse. Now, it’s too late to do estate planning because of Uncle John’s mental state. If he becomes fully incapacitated, mentally or physically, a court will have to get involved and name someone to make decisions for him because it wasn’t handled when Uncle John was mentally capable. Family members still don’t want to admit that Uncle John’s mind is going away—surprising since their father and all four of their father’s siblings died of Alzheimer’s, and the family saw it.
How many people have cognitive impairment
Uncle John’s story is not uncommon. A study by Columbia University found that 22% of people age 65 and older have mild cognitive impairment and another 10% have dementia. The Alzheimer’s Association says an additional 10.7% have Alzheimer’s. That’s almost 43% of people 65 and older who have some sort of cognitive issue.
Definition
The Mayo Clinic defines Alzheimer’s as a brain disorder that gets worse over time. It’s characterized by changes in the brain that lead to deposits of certain proteins causing the brain to shrink and brain cells to eventually die. Alzheimer’s disease is the most common cause of dementia—a gradual decline in memory, thinking, behavior, and social skills which can affect a person’s ability to function.
Symptoms
Memory Loss
Memory loss is the key symptom of Alzheimer’s disease. Everyone has memory lapses, but memory loss associated with Alzheimer’s persists and gets worse. People with Alzheimer’s may:
- Repeat statements and questions over and over.
- Forget conversations, appointments, or events.
- Misplace items, often putting them in places that don’t make sense.
- Get lost in places they used to know well.
- Eventually forget the names of family members and everyday objects.
- Have trouble finding the right words for objects, expressing thoughts, or taking part in conversations.
Thinking and reasoning
Alzheimer’s disease causes difficulty concentrating and thinking, especially about abstract concepts such as numbers. Doing more than one task at once is especially difficult. It may be challenging to manage finances, balance checkbooks, and pay bills on time. Eventually, a person with Alzheimer’s disease may be unable to recognize and deal with numbers.
Making judgments and decisions
Alzheimer’s disease causes a decline in the ability to make sensible decisions and judgments in everyday situations. For example, a person may make poor choices in social settings or wear clothes for the wrong type of weather. It may become harder for someone to respond to everyday problems. For example, the person may not know how to handle food burning on the stove or decisions when driving.
Planning and performing familiar tasks
Routine activities that require completing a series of steps that have to be done in a particular order become a struggle. This may include planning and cooking a meal or playing a favorite game. Eventually, people with advanced Alzheimer’s disease forget how to do basic tasks such as dressing and bathing.
Changes in personality and behavior
Brain changes that occur in Alzheimer’s disease can affect moods and behaviors. Problems may include:
- Loss of interest in activities.
- Social withdrawal.
- Mood swings.
- Distrust in others.
- Anger or aggression.
- Changes in sleeping habits.
- Loss of inhibitions.
- Delusions, such as believing something has been stolen.
The symptoms of Alzheimer’s get worse over time, although the rate of progress varies. On average, a person with Alzheimer’s lives four to eight years after diagnosis, but can live as long as 20 years, depending on other factors. Changes in the brain related to Alzheimer’s begin years before any signs appear. It’s referred to as preclinical Alzheimer’s disease.
Stages of Alzheimer’s
The Alzheimer’s Association says there are three stages of Alzheimer’s:
Early Stage (mild)
In the early stage of Alzheimer’s, a person may function independently. He or she may still drive, work, and be part of social activities. Despite this, they may notice that they’re forgetting familiar words or the location of everyday objects. In this stage, symptoms may not be apparent to family and close friends. This is the ideal time to put legal, financial, and end-of-life plans in place because the person with dementia will be able to participate in the decision-making.
Middle Stage (moderate)
Middle-stage Alzheimer’s is typically the longest stage and can last for years. As the disease progresses, the person with Alzheimer’s will require a greater level of care. The dementia symptoms are more pronounced. Besides being forgetful, you will notice the person:
- Feeling moody or withdrawn, especially in socially or mentally challenging situations.
- Being unable to recall information about themselves like their address or telephone number, and the high school or college they attended.
- Experiencing confusion about where they are or what day it is.
- Requiring help choosing proper clothing for the season or the occasion.
- Having trouble controlling their bladder and bowels.
- Experiencing changes in sleep patterns, such as sleeping during the day and becoming restless at night.
- Showing an increased tendency to wander and become lost.
- Demonstrating personality and behavioral changes, including becoming suspicious of others, delusions, or compulsive, repetitive behavior like hand-wringing or tissue shredding.
Late Stage (severe)
In the final stage of the disease, dementia symptoms are severe. Individuals lose the ability to respond to their environment, to carry on a conversation, and, eventually, to control movement. They may still say words or phrases, but communicating that they are in pain becomes difficult. As memory and cognitive skills continue to worsen, significant personality changes may take place and individuals need extensive care. Individuals may:
- Require around-the-clock assistance with daily personal care.
- Lose awareness of recent experiences as well as of their surroundings.
- Experience changes in physical abilities, including walking, sitting, and, eventually, swallowing
- Have difficulty communicating.
- Become vulnerable to infections, especially pneumonia.
Vulnerability
At any of the stages of Alzheimer’s and dementia, the affected individual can become a target for elder financial abuse which is taking or misusing the elder’s money or property for themselves. For example, neighbors, caregivers, professionals, and even family or friends may take money without permission, fail to repay money they owe, charge too much for services, or not do what they were paid to do. The U.S. Justice Department describes it this way:
“Financial exploitation” means the illegal, unauthorized, or fraudulent use, or deprivation of use, of the property of a vulnerable adult with the intention of benefiting someone other than the vulnerable adult.
Just like Uncle John being taken advantage of by a family member, 62% of elder financial exploitation is committed by family members. The financial abuse can include:
- Forcing a senior to sign financial documents
- Abusing joint signature authority
- Misusing credit or debit cards
- Cashing a check without authorization
- Misappropriation of pension funds
- Misleading an older adult resulting in misappropriation of funds
- Coercing or persuading a change in beneficiaries on a will or insurance policy
- Misusing Power of Attorney privileges
- Negligent mishandling of assets
- Overcharging for caregiving
- Denying older adult access to their accounts or money
- Withholding affection or care for the elderly because they didn’t comply with a financial request.
Warning signs of elder financial abuse
The key to spotting elder financial abuse is a change in a person’s established financial patterns. For example:
- Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals.
- ATM withdrawals by an older person who has never used a debit or ATM card.
- Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
- Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
- New “best friends” accompanying an older person to the bank.
- Sudden non-sufficient fund activity or unpaid bills.
- Closing CDs or accounts without regard to penalties.
- Uncharacteristic attempts to wire large sums of money.
- Suspicious signatures on checks, or outright forgery.
- Confusion, fear, or lack of awareness on the part of an older customer.
- Refusal to make eye contact, shame, or reluctance to talk about the problem.
- Checks written as “loans” or “gifts.”
- Bank statements that no longer go to the customer’s home.
- New powers of attorney the older person does not understand.
- A caretaker, relative, or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation.
- Altered wills and trusts.
- Loss of property.
Reporting elder financial abuse
If you suspect elder financial abuse, you can report it to Adult Protective Services (APS), which serves older adults who need help due to abuse, neglect, or exploitation. You can find your local APS here. Other options include calling the local police or sheriff’s office or reporting the abuse to the local District Attorney’s office.
What information do I need to file a report?
The more information you can give investigators the better. If possible, include:
- Time, date, and location of the financial abuse.
- Description of the suspected financial abuse.
- The person you suspect of the financial abuse.
- Why you suspect them.
- Your loved one’s decision-making abilities and/or memory loss.
- Whether you believe there is an urgent risk of danger.
The issue of dementia and Alzheimer’s will only expand as the tidal wave of Baby Boomers hit their 60’s and are expected to live longer than any generation before them. More people with cognitive impairment also means more instances of elder financial abuse. It’s imperative that we watch out for those who can’t take care of themselves any longer.
To care for those who once cared for us is one of the highest honors. ~
Tia Walker, author-The Inspired Caregiver
Disclaimer
This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice, or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors, all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investment Partners at 1-888-777-0970 or email us at [email protected].
