When Dementia Leads to Debt

Conservatorship

Avoid Court if at all possible. Once a professional conservator or guardian smells the prey (the proposed conservatee), you may lose all control of your husband's assets and maybe even your own, depending on how they are held. It's good to prepare estate planning documents but they are no guarantee of protection.

Terri Alvillar of CA @ Dec 28, 2007 22:53:26 PM

Posing

Although it is illegal, posing as someone when calling on the phone is the only reliable way to get anything accomplished. Also, set up Internet access for all financial accounts so you can review transactions 24/7.

JimmyDaGeek of MD @ Dec 28, 2007 09:41:50 AM

credit and dementia

I'm conservator for my father who has Alzheimer's. The credit bureaus told me that it was nearly impossible for me to stop the flood of credit offers to my dad. Despite sending out letters to credit card companies and asking them to terminate all the accounts, they persist in sending checks and more "offers". Recently I spent half an hour on the phone with one company who insisted my father had to close the account himself. Only after "going up the proverbial ladder" in their hiearchy and notifying them that they would be liable for all charges since the court has to approve bills I pay...did they recant. We have a big problem in this country in banks not understanding conservatorships and guardianships and it's only going to get worse.

Coleen Mackin of CA @ Dec 16, 2007 13:38:58 PM

Great ideas

Thank you for these great (and useful) ideas, David and Josh. It always helps to hear from people with experience.

Kimberly Palmer of DC @ Dec 05, 2007 18:05:02 PM

resource

Didn't know if this might be useful for your groups:

http://www.alzheimer.guelph.org/

Robin of DC @ Dec 05, 2007 18:01:53 PM

financial decisions after dementia

I am an elder law attorney. In most states, transactions made by a person without legal competency are voidable. That means that they can be undone.

A durable power of attorney is an excellent tool for many situations, but one problem is that signing a durable power of attorney doesn't prevent the person from still doing things. I have one now but I still make my own financial decisions. It's a protective device in case I ever need help in the future. Think of it as it you are hiring an employee. A boss who hires an employee can still do things himself or herself. On the other hand, if a court appoints someone to make financial decisions, this generally removes the ability of the person to make his or her own decisions.

Josh Ard of MI @ Dec 05, 2007 15:44:02 PM

Credit Freeze and Durable Powers of Attorney

A Credit Freeze will not stop someone from using their existing credit cards. In addition if they are not able to communicate, they will not be able to place the freeze. You cannot place a freeze on your spouses account (legally).

Considering everyone should have a durable power of attorney anyway, this is a very inexpensive way to resolve this and so many other problems that we see on a daily basis.

Florida Estate Planning Lawyer, David Goldman of FL @ Dec 05, 2007 11:14:58 AM