The Challenge
You’re concerned about your mom’s finances as she’s been diagnosed with early Alzheimer’s, and it’s beginning to affect her judgment. Reckless spending is depleting her money, but the bank won’t cancel her accounts without the proper legal authority. Here’s where you have to take specific steps to protect her assets while ensuring her care needs are looked after.
Why Banks Refuse Your Request
Banks can’t legally cancel someone’s account or credit cards by someone else’s request, even if it’s a parent. Without the proper legal documentation in place such as power of attorney, they’re legally required to respect her autonomy. Privacy and liability laws restrict them from taking action.
Power Of Attorney: The Basics
A durable power of attorney (POA) is one of the most effective ways to take control of your mom’s finances. If she is still competent enough to sign, she can designate you, which will grant you the authority to manage accounts on her behalf and prevent further financial harm.
James D. Sims, Wikimedia Commons
Move Before Capacity Declines Further
Time is of the essence. Alzheimer’s is progressive, and once your mother inevitably loses legal capacity, she can no longer sign a POA. Acting as soon as possible ensures you have the authority in place to safeguard her finances before more spending empties her accounts.
Guardianship As A Last Resort
If it’s too late for a POA, you may have to petition the court for guardianship or conservatorship. This is a more complicated process, but it gives you the legal authorization to manage her money. Judges carefully weigh the medical evidence before granting guardianship.
Gather Medical Documentation
Banks and courts often require official proof of diminished capacity. Ask her doctor for written confirmation of her Alzheimer’s diagnosis and how it is interfering with her financial judgment. Medical records will always strengthen your case for intervention.
Monitor Her Accounts Closely
While you pursue legal authority, keep an eye on her accounts if you have access to statements. Look for any unusual spending, duplicate charges, or evidence of predatory transactions. Being vigilant and taking quick action can prevent further losses.
Contact The Bank’s Legal Department
Instead of speaking only to branch staff, try to set up a meeting with the bank’s legal or compliance department. Provide them with the medical documentation you’ve assembled and explain the urgency of the situation. Some institutions may temporarily freeze accounts just to be on the safe side.
Add Account Restrictions
Some banks allow joint accounts with limited access or they can set up alerts to notify you of any large transactions. It’s not foolproof, but these tools give you real-time notifications if any reckless spending is going on. It’s a stopgap measure to tide you over while you continue to pursue full legal authority.
Cancel Automatic Payments
If your mom has any subscriptions or recurring payments, cancel these directly with the providers. Even without POA, it may be possible to stop the charges by contacting the vendors or credit card customer service.
Contact Credit Bureaus
You can ask for fraud alerts or credit freezes with the major credit bureaus. This won’t cancel the current accounts but it will prevent any new lines of credit from being opened in her name. It’s another safeguard against financial exploitation.
Deal With Debt Collectors
If her spending has already built up some debt, know your rights. Collectors can’t pursue you personally unless you were a co-signer. If the debt becomes unmanageable, you may be able to negotiate repayment plans or ask creditors for hardship considerations.
Medicaid Planning Considerations
At some point your mom may need long-term care. You need to verify her financial eligibility for Medicaid, as reckless spending could jeopardize her benefits. Meet with an elder law attorney to make sure you protect her short-term finances and long-term healthcare needs.
Photo By: Kaboompics.com, Pexels
Protect Against Scams
The unpleasant reality is that people with Alzheimer’s are frequently the targets of scams. Teach her not to answer any unknown calls or emails, and consider call-blocking devices. Report any suspected fraud immediately to both the bank and law enforcement.
Seek Elder Law Legal Help
An elder law attorney specializes in all of the issues we’ve been talking about. They can prepare the right legal documents, represent you in guardianship proceedings, and give you an added layer of protection against elder financial abuse. Professional help saves you a lot of time and prevents costly mistakes.
Photo By: Kaboompics.com, Pexels
Family Mediation May Help
Siblings or relatives may disagree with you on the need to exert financial control. Mediation can settle these disputes and prevent any accusations of misuse. Transparency protects both your mom and you from potential conflict later on down the road.
Financial Caregiver Registries
Some states allow caregivers to be listed with banks through an official registry. These designations reassure institutions that they’re working with the right person, reducing delays when you need to step in and get things done.
Balance Compassion And Protection
Taking control of your mom’s finances may feel difficult, triggering a range of emotions. Always keep in mind that your goal is to protect her dignity while ensuring she doesn’t suffer financial harm. Compassion and communication are the bedrock underpinning the legal steps you’re taking.
Plan For The Future
This experience demonstrates the importance of early planning. Encourage other family members to set up POAs, wills, and healthcare directives before any crises occur. Proactive planning avoids misunderstandings and painful disputes.
Move Forward With Confidence
Though it may seem overwhelming at times, you can manage this situation in a step-by-step fashion. There are many people dealing with this exact same issue all across the country. Securing legal authority, working with professionals, and safeguarding accounts ensures your mom’s financial stability. Acting now protects her best interests while setting your mind at ease.
You May Also Like:
Grandma's Spending A Lot Of Time (And Money) At The Casino. Should I Intervene?
