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How to manage a family member's finances after being diagnosed with Alzheimer's?
Posted on 8/3/23 at 2:37 pm
Posted on 8/3/23 at 2:37 pm
I posted on the OT last week about my FIL's struggles with dementia. While he's resisting giving up control of his finances, he at least brought my wife in to go over his investments. It was overwhelming to her to say the least.
I handle all of our finances, and I've always kept it straightforward and simple. We're both teachers on pension plans and we both contribute regularly to our Roth IRAs. We invest in a few index funds, and we've seen consistent gains in our accounts. I'm not someone who spends time trying to maximize wealth or anything like that.
My FIL has a significant amount of money spread out across many investments. He also has significant amounts of cash spread out in six different banks. My wife is not equipped to handle these kinds of investments or understanding even what to do with them. Neither am I to be honest.
She wanted to just liquify everything but quickly learned that 1) taxes would eat a huge chunk of it all and 2) you can't just park millions of dollars in an account.
What kind of service can I point her to that can guide her in how to handle this kind of situation? Everything online leans towards managing trusts or inheritances, but this wouldn't be "inheriting" but rather taking over a complex set of investments.
I handle all of our finances, and I've always kept it straightforward and simple. We're both teachers on pension plans and we both contribute regularly to our Roth IRAs. We invest in a few index funds, and we've seen consistent gains in our accounts. I'm not someone who spends time trying to maximize wealth or anything like that.
My FIL has a significant amount of money spread out across many investments. He also has significant amounts of cash spread out in six different banks. My wife is not equipped to handle these kinds of investments or understanding even what to do with them. Neither am I to be honest.
She wanted to just liquify everything but quickly learned that 1) taxes would eat a huge chunk of it all and 2) you can't just park millions of dollars in an account.
What kind of service can I point her to that can guide her in how to handle this kind of situation? Everything online leans towards managing trusts or inheritances, but this wouldn't be "inheriting" but rather taking over a complex set of investments.
3
Posted on 8/3/23 at 2:44 pm to StringedInstruments
You need to speak with an attorney who focuses on elder law. They can make recommendations for someone to help.
Posted on 8/3/23 at 2:46 pm to Dawgfanman
That's a good point, and my wife has reached out to some. I'm not sure where she is on that front. I know she already has POA and is the executor of their will.
Posted on 8/3/23 at 3:16 pm to StringedInstruments
quote:
she already has POA
A principal of sound mind has the authority to override any decision made by an agent pursuant to a POA. A diagnosis of dementia/Alzheimer's does not necessarily mean that a person is incapacitated or not of sound mind. If the principal doesn't agree with the agent's decisions and the agent wants to remove the principal's ability to disagree, interdiction is generally the first option. It is very difficult. Interdictions are very common in the dementia and Alzheimer's realm.
quote:
executor of their will.
Not relevant until death.
Best advice was given above. You need to consult with an elder law attorney or estate planning attorney.
Posted on 8/3/23 at 4:49 pm to Dawgfanman
quote:
You need to speak with an attorney who focuses on elder law. They can make recommendations for someone to help.
^^^ this ^^^ and inquire about placing assets in a Trust while you FIL is capable of sitting in front of his attorney. Prayers lifted for you and your wife . It’s a tough row to hoe
Posted on 8/3/23 at 5:01 pm to StringedInstruments
You need to work on gathering all the paperwork and information (log ins or emails) for your FIL first. Unless there is a reason to liquidate and simplify, I'd hold off on that right now. There's no hurry unless he is in a very risky investment, which if he is wealthy there's a good chance he is NOT at risk for a major loss considering his age he probably is conservatively invested.
Then just be patient. There's really not a lot of reasons to do anything right now.
I would use it as a good reason to pick up a couple of basic investing books and the both of you get more experienced. Its really pretty simple.
It may be a good thing for your wife to talk to your FIL about to keep his mind busy.
Then just be patient. There's really not a lot of reasons to do anything right now.
I would use it as a good reason to pick up a couple of basic investing books and the both of you get more experienced. Its really pretty simple.
It may be a good thing for your wife to talk to your FIL about to keep his mind busy.
Posted on 8/3/23 at 6:33 pm to baldona
I’ve recently gone through this and sorry you guys will have to. Sounds like your FIL is a bit more complex financially than my father but the will and most likely already in place beneficiaries on retirement accounts should be fine as is and handle that after death. Liquidating everything sounds like a shite show on numerous fronts
I learned the hard way that POA ceases upon death and she would lose access to regular on deposit banking accounts until succession. My biggest advice would be, if she can talk him into it, would be being added as joint owner on regular accounts to be able to access funds uninterrupted.
If you’re worried it’s too much for her definitely speak with a pro as everyone else mentioned
I learned the hard way that POA ceases upon death and she would lose access to regular on deposit banking accounts until succession. My biggest advice would be, if she can talk him into it, would be being added as joint owner on regular accounts to be able to access funds uninterrupted.
If you’re worried it’s too much for her definitely speak with a pro as everyone else mentioned
Posted on 8/3/23 at 8:11 pm to StringedInstruments
Are you in AL? One of the guys who started the entire elder law field is up in the Quad Cities, though he is semi-retired now. He would likely still be willing to help. Tom Minetree is his name.
The others who have posted here are correct, POA alone won't cut it. You need guardianship, and it is best to talk the parent into it while they are still somewhat lucid. Took months of coaxing my Mom to do it, she was ultimately relieved when she went ahead with it.
As for the finances, you need to seek out independent financial advisors. If you FIL has accounts with the likes of Schwab or one of the other big ones, they offer things like this. You will need guardianship first though before they will talk with you.
The others who have posted here are correct, POA alone won't cut it. You need guardianship, and it is best to talk the parent into it while they are still somewhat lucid. Took months of coaxing my Mom to do it, she was ultimately relieved when she went ahead with it.
As for the finances, you need to seek out independent financial advisors. If you FIL has accounts with the likes of Schwab or one of the other big ones, they offer things like this. You will need guardianship first though before they will talk with you.
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