Frank ran a thriving family-run manufacturing business that employs over 200 people. With his keen financial acumen and people skills, he successfully led the business through economic ups and downs. At 75 years of age, he retired, leaving the company in strong financial standing and in good hands with his adult children.
A few years after retirement and unbeknownst to his family, Frank was struggling to manage his checkbook and the household budget. When family would visit, it wasn’t unusual to find Frank in his home office, a stack of unopened mail on his desk.
What stopped Frank’s kids in their tracks was a call one morning from their dad’s neighbor. She shared that the electricity wasn’t working at Frank’s house, and they couldn’t determine why, prompting the call.
Frank’s son Charlie immediately headed over to the house to see if he could resolve the issue. There he found his dad in his home office. That’s when Charlie noticed several envelopes from the utility company on top of the stack of mail on his desk.
He asked his dad if he could look at one of the unopened utility bills. Appearing prominently on top of the bill in large, in bold font were the words FINAL NOTICE. The bill had been sent two weeks prior, and the notice indicated that the power would be disconnected on this day if payment was not made.
Charlie called the utility company to remedy the situation and arranged for automatic payment. Power was restored in two hours. This is when Charlie began to unravel an unexpected and surprising series of bill payment missteps, checkbook errors, and a potential case of financial abuse.
More Common Than You Might Think
As neuropsychiatrist Dr. Reza Hosseini Ghomi recently expressed in a post on LinkedIn: “The first sign of dementia often shows up in a checkbook. Years before anyone notices the memory issues. There is an old saying in geriatrics: the first place to look for dementia is the checkbook.”
We see this often in our aging life care practice as well: clients who had successful careers, managed bills, budgets, and investments with ease, begin to slowly and quietly struggle to manage their finances and make decisions.
In addition to mail piling up, unpaid bills, and difficulty balancing the checkbook, other signs may include:
- Changes in executive function that are uncharacteristic, such as challenges with processing complicated information, planning, multitasking, judgment, focusing, and concentration.
- Lacking motivation to engage in activities that once brought purpose and joy.
- Not answering or returning phone calls, text or email messages. Missing appointments and scheduled activities and events.
- Unable to track conversations or plots when watching a TV program or movie.
- Victim of financial fraud or abuse as evidenced by large withdrawals of money from account/s.
When Charlie reviewed the checkbook and bank accounts with Frank, he noticed that there were numerous large donations to one charity. He didn’t recognize the name of the organization nor understand his father’s ties to it, nor did his father, which was concerning.
He also noticed large checks written to the housekeeper, which Frank dismissed as gifts, saying that the housekeeper was having a hard time and needed money for car and home repairs. This had been going on for over six months.
How best to move forward
- Get curious, not angry. Have a calm conversation with the person you care about to gain a better understanding of what is going on and the challenges and changes they may be experiencing.
- If possible, it’s best to set up automatic payments and paperless statements before there is an issue. If the person in your care has capacity, work together on making these preventative updates to accounts.
- There are also professional family office administrators you can hire to help pay bills, track financial records, assist with tax preparation and filing, manage and oversee household payroll, and evaluate and forecast personal budgets.
- Ask your loved one for permission to serve as a second set of eyes on the accounts, while they can still choose to give it.
- Sometimes this is already established in legal paperwork under a Financial power of attorney.
- If the pattern of unpaid bills and financial mismanagement persists, that is a reason for an evaluation.
Money management is an Instrumental Activity of Daily Living (IADL) and an important part of independent living. Decline in the ability to perform IADLs is often the first sign of a health or medical issue. A healthcare professional can help evaluate the underlying cause.
How can an Aging Life Care Professional® (AKA geriatric Care Manager) help?
As Aging Life Care Professionals, we interact with the health care system effectively and frequently. Care Managers attend doctor appointments and facilitate communication between doctor, client, and family.
We can also help determine types of services – such as professional bill payers and fiduciaries, home health, and creative engagement – that are right for a client and assist in engaging and monitoring those services.
Want to learn more about an Aging Life Care Professional can support your family’s situation in these matters?
Click Here to Schedule A Get-Acquainted Call to explore how we can help.
Additional Reading
- What’s the difference between dementia and Alzheimer’s disease? (Aging Wisdom blog article)
- What’s in an Alzheimer’s test? (Aging Wisdom blog article)
- Planning for the Future Following an Alzheimer’s Diagnosis (Aging Wisdom blog article)
- Signs a Vulnerable Person is Being Exploited (Aging Wisdom fact sheet)
