Finances are a huge source of anxiety for most people. Everyone, from all age groups and backgrounds, experiences uncertainty when it comes to financial decisions and welfare. This worry increases for senior citizens as they struggle to maintain their independence and start relying more on others to help pay bills and manage bank accounts. According to a Bankrate article, “52 percent of U.S. adults said money has a negative impact on their mental health, including causing stress.” And this doesn’t necessarily include individuals facing other financial complications such as major life changes (i.e. moving from home to a nursing facility), potential scams, or the declining ability to manage one’s own finances. That is why it is smart to equip yourself with knowledge to help prevent financial abuse. Here are 3 tips for preventing financial abuse from our own team and the American Bankers Association.
PC: Chris Briggs
Assign a Trustworthy Financial Caregiver
It is not unusual for family and even friends to vie for the ability to control your finances as you get older. This often comes from a loving place, but can easily devolve into financial abuse if the wrong person is put in charge. To prevent this, assign a trustworthy financial caregiver ahead of time so you know your money is in good hands if you’re ever unable to manage it yourself. Access the American Bankers Association fact sheet here.
Be Cautious When Signing Powers of Attorney
Signing over power of attorney can be an intimidating task. It is important to make sure your power of attorney is someone you trust, who knows your goals and wishes, and will communicate with you. Financial power can easily be abused, one way to safeguard yourself is to meet with an attorney before signing a power of attorney, especially when it involves finances.
Regularly Check All Statements
Whenever you can, you should be creating paper trails for all payments and other transactions. Additionally, you should be as diligent as possible in reviewing all of your bank, investment, and other financial statements and documents. In fact, build this into your discussion with your financial caregiver and power of attorney, letting them know that you would like to be a part of reviewing these documents and have access to these documents on a regular basis. This ensures that anything odd or unusual is less likely to slip by you.
Though it may be a sign of a loss of independence, making a plan for how financials will be handled as you age is an important part of preventing abuse and ensuring comfort. Read the American Bankers Association’s full list of suggestions.
If you or a loved one have been the victim of abuse or neglect, call Gharibian Law (877-460-1187) today for a FREE consultation and the best legal representation.
3 Tips for Preventing Financial Abuse
Finances are a huge source of anxiety for most people. Everyone, from all age groups and backgrounds, experiences uncertainty when it comes to financial decisions and welfare. This worry increases for senior citizens as they struggle to maintain their independence and start relying more on others to help pay bills and manage bank accounts. According to a Bankrate article, “52 percent of U.S. adults said money has a negative impact on their mental health, including causing stress.” And this doesn’t necessarily include individuals facing other financial complications such as major life changes (i.e. moving from home to a nursing facility), potential scams, or the declining ability to manage one’s own finances. That is why it is smart to equip yourself with knowledge to help prevent financial abuse. Here are 3 tips for preventing financial abuse from our own team and the American Bankers Association.
Assign a Trustworthy Financial Caregiver
It is not unusual for family and even friends to vie for the ability to control your finances as you get older. This often comes from a loving place, but can easily devolve into financial abuse if the wrong person is put in charge. To prevent this, assign a trustworthy financial caregiver ahead of time so you know your money is in good hands if you’re ever unable to manage it yourself. Access the American Bankers Association fact sheet here.
Be Cautious When Signing Powers of Attorney
Signing over power of attorney can be an intimidating task. It is important to make sure your power of attorney is someone you trust, who knows your goals and wishes, and will communicate with you. Financial power can easily be abused, one way to safeguard yourself is to meet with an attorney before signing a power of attorney, especially when it involves finances.
Regularly Check All Statements
Whenever you can, you should be creating paper trails for all payments and other transactions. Additionally, you should be as diligent as possible in reviewing all of your bank, investment, and other financial statements and documents. In fact, build this into your discussion with your financial caregiver and power of attorney, letting them know that you would like to be a part of reviewing these documents and have access to these documents on a regular basis. This ensures that anything odd or unusual is less likely to slip by you.
Though it may be a sign of a loss of independence, making a plan for how financials will be handled as you age is an important part of preventing abuse and ensuring comfort. Read the American Bankers Association’s full list of suggestions.
If you or a loved one have been the victim of abuse or neglect, call Gharibian Law (877-460-1187) today for a FREE consultation and the best legal representation.