Changes in the brain associated with Alzheimer’s disease or other types of dementia lead to changes in memory and thinking skills, even before symptoms become apparent enough for a doctor’s diagnosis. Beck, Lenox & Stolzer Estate Planning and Elder Law brings you a recent article, “Preventing Financial Fraud for Elders with Dementia,” from Alzheimer’s San Diego. It outlines steps on how you can protect loved ones with dementia. Many of these steps apply to elderly family members as well, since cognitive skills are often diminished with age.
Setting up financial safeguards should be done before a person has a diagnosis or is considered incapacitated, as they cannot sign legal documents on their own behalf. This can be avoided by having estate planning documents in place before they are needed, including a power of attorney, a healthcare power of attorney, a last will and testament and ensuring that beneficiary designations are up to date. If appropriate, a trusted contact may be added to certain financial accounts.
Simplifying finances includes setting up automatic bill payments. Any unused credit cards should be closed, and financial accounts should be consolidated to make it easier for a trusted person to monitor. If bills are unopened, unusual purchases or withdrawals are taking place, fast action could prevent financial damage.
Documents with account numbers should be shredded before being discarded. If important financial documents are kept at home, they should be in either a locked filing cabinet or a fire- and waterproof safe. A trusted person should have access to the combination or key in case the owner is hospitalized.
Discussions with adult children or trusted adults regarding scams are necessary. Elderly people with dementia are vulnerable, and thieves take advantage of this. Social Security, Medicare, or Medicaid information should never be shared with anyone, especially in response to unsolicited phone calls, emails, or texts.
There are tech support scams, fraudulent prize offers, phony home or auto repair offers, government impersonator scams and romance scams. In emergency or arrest scams, AI is used to impersonate a loved one’s voice, typically a grandchild, saying they are in urgent need of money in the form of gift cards.
Dementia patients who use social media and digital devices to connect with friends and family are at risk. Friend requests may be accepted from strangers who build relationships over extended periods and appear genuine but are actually scammers. AI now allows anyone to create a life-like avatar who will, at some point, need their help for a financial problem. Dangerous links in social media posts are often an entry point for thieves.
Everyone should have an estate plan in place. However, this becomes even more important as we age. Even without dementia, the aging process is often accompanied by changes in cognitive skills, including the ability to tell friend from foe. Having the correct legal documents and financial guardrails in place will protect everyone in the family.
If you don’t know if your elderly parent or grandparent has an estate plan, ask them. Any loved one over 80 years of age or anyone showing signs of dementia may need assistance with putting one in place. If you are actively helping them with some of their daily activities and obligations, take advantage of our free phone consultation with one of our attorneys to discuss concerns and needs. Click here to schedule.
Reference: Alzheimer’s San Diego (Feb. 5, 2026) “Preventing Financial Fraud for Elders with Dementia”
