The Aging Brain: What Does it Mean for You and Your Family? - Advisor Podcast

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welcome to the cia bc rapid wealth management advisor podcast a good financial planner helps clients make wise decisions with their money regardless of their stage of life of course a plan is advice will vary with declines age for example a client in their twenties and likely a forward to engage in higher risk scenarios many clients in their seventies who is probably looking for more conservative approach to wealth management but what if a client starts making bad decisions say they're exhibiting signs of advanced dementia or alzheimer's disease wins should a financial planner step in and what role should they play in protecting their clients assets if any learn more we spoke with kate grand again chief executive officer at life care advocates with more than twenty years of experience of geriatric social worker she believes financial planners need to understand the president's mental capacity before becoming involved generally speaking capacities be ability the understand and appreciate the nature and consequences are making a decision okay hurting my personal life i in that back in their house there where they love what they do what they spend but it's really any ability to understand and appreciate the the pros and cons of making a decision and you know make that decision weighing all of those so what if that decisions seems to not be in the client's best interests where is the line between someone making a conscious choice in in their decision we shouldn't acquaint sound lines decision we don't agree was or you know felons decision a you know in are estimation seems like poor judgment we we can't acquaint wes no incapacity lose the doctor financial sort of terms of families that have mom or dad he's in a you know who has been widow dad you know has full control dollars finance is mom's been gone six months and all of a sudden dad's got this you know thirty year younger girlfriend it is spending guttural amount of time and money and then you know loan hold a year later goes and says you know what were getting married on signing everything off to her nostalgia autumn medically mean he doesn't have the capacity that's uncomfortable that's out of character not out of character 'cause he married a mom for sixty years but she's gone now got a different perspective so you know would you pause as a financial planner and evaluate what you have some checks and balances probably but we've seen that a car when when abscond has held off that again his rights maybe making these choices maybe this is a person taking advantage of them he has the right to choose determining a clearance motivations in the mental capacity is really easy but there are some red flags to watch out for the rest of the fines where someone baby declining their status cognitive status other cities and question their ability to make those decisions things that are very common that anybody you know it's talked about pretty regularly now when you talk about alzheimer's dementia things like an apparent memory loss repeating the same sentence asking the same questions and confusion first timer place really not knowing what's going on so definitely you know a you know not having the capacity to know you know even mixing off my daughter for a sister or they're not oriented to current time in place of course these red flags are often difficult to see or the person may just be good hardy and the other thing is kinda start subtly an a lot of people where it's a when you know confronted with the question mom you know it's me i'm not you're sister on her daughter so people hide that they become embarrassed day you know they sort of backtracking oh of course is just you know that certainly ended but those kinds of sort of beginning science 'em are or something they know things like unpaid bills or double pay bills or someone who i've had people call and say my mom was the most you know incredible bookkeeper she ran a company she ceo and she is now completely i found out you know she's not paying any bills just completely messed up her attacker town you know things are she hasn't paid her taxes in two there's there's some some changes behavior you know that is indicative of something going on in that is a good red flag to note is changing what was often you know a very historical strang financial planners have take a lot into consideration when situations like this occur but in terms of wins someone needs to step in it typically depends on the amount of risk involved and it comes down to what we we started this measure as capacities russia's rats there's a number of factors that someone would be looking at you know is this a pretty minor decision you know i wanna allocate funds to this account versus this account wanna know living this environment on you know if the risk is relatively low another step people look is you know who is going to adjust to that somebody can express their atonomy without being in inevitably evaluated for capacity which is you know demoralizing in embarrassing in often causes huge complex within seemingly systems and and others you know the risk is relatively low then being needs for you know the level of understanding of state can also be a little bit lower the threshold when the risk is considerably higher end at a level of the fast and evaluation if i see any they should be higher perhaps the best thing a planner can do is to be proactive in create a plan before there is a problem when the planning still has spoke about all things considered when people are proactive you have you know the documents in place for powers of attorney little powers of attorney healthcare proxy you've had extended conversations with those perfect those professional how the lord and nowadays i will tell you we see more and more extensive and creative documentation around people's wishes that go harvey on just appointing someone that's why i think having some pre planning or pre discussion families and individuals to say you know at what point would it be okay for me to check in with your daughter or you sound like something's off sometimes we can just get under the weather in it might not quite herself would it be okay if i checked in with their daughter in that case or at what trying it out for more information about cognitive decline in financial planning check out the latest edition of the adviser at crime and wealth dot u s c i b c dot com cnbc private wealth management include cnbc national

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