Access to a power of attorney can be difficult if your parent is hesitant. Carrie Aalberts, a certified dementia practitioner who is known online as the Dementia Darling, counsels that “patience and understanding” may be required.

“It's crucial to allow family members time to process the information, recognizing that these conversations often unfold over multiple discussions rather than in a single sitting,” says Aalberts, who provides education and support to caregivers and the dementia community and has more than 50,000 followers online. 

“Emphasize how addressing these topics benefits the entire family, not just individuals, and stress the importance of having one's wishes known and respected," she says. "By engaging in these conversations, despite their challenges, families ensure that each member's voice is heard and their preferences are considered in future decision-making.”

Fritch, the CPA, describes a power of attorney as vital for assigning decision-making authority to a trusted person and emphasizes the importance of setting it up early to allow immediate management of financial matters if someone becomes incapacitated. He adds, "In my 40 years of helping families, I've seen how a proactive POA setup can prevent disputes and ensure that financial decisions are made smoothly, safeguarding the individual's estate and well-being."

With so many different documents to gather, it’s crucial to store them somewhere secure but still accessible, like Trustworthy. Trustworthy's Family Operating System® allows you to store all gathered financial records for your parent in an online vault with advanced security measures. Collaboration features and user permissions make sharing these documents easy, and the advanced filing features make keeping the documents organized headache-free. 

Setting Up a Physical and Digital Organization System

After you gather financial documents from various places, set up a physical or digital organization system. This makes searching for specific documents faster, especially during emergencies. 

To physically file your documents, choose a system that works for you, like folders, binders, and filing systems. To help navigate documents, sort them into categories like medical expenses, income, insurance policies, etc. You can use brightly colored tabs to mark their location. Consider storing your documents somewhere secure, like a fireproof safe or lockbox at the bank.

Going digital adds an extra level of security and makes accessing documents faster and simpler. Choose an encrypted storage solution like Trustworthy's.

Trustworthy makes the organization process intuitive, with filing features powered by AI. The Autopilot feature makes suggestions for file names and where to store them. There is even a feature that arranges your information into organized categories without you needing to start from scratch. Document summaries make locating and sharing documents quick and seamless.        

Managing Monthly and Recurring Expenses

Managing your parent’s financial documents also involves ensuring there is money for recurring expenses and no payments are missed. 

To do this effectively, you need an overview of what you’re working with. Make a list of recurring bills and subscriptions. You should also track all medical expenses for tax deductions or insurance claims. 

Trustworthy includes automatic reminders that help members avoid missed or late payments that could result in interrupted or delayed treatment. Members can use the finance tab to set up payment reminders, create and track monthly budgets, and store all account details somewhere safe.  

Planning for Care Costs

Dementia may require long-term care expenses like home care, assisted living, or nursing homes. Start planning for these future costs as soon as your parent is diagnosed.

A good place to start is by reviewing their insurance policies to determine whether they cover costs associated with long-term care and what expenses you will pay out-of-pocket. Consider changing or moving insurance policies for better future care if applicable.  

Also, take the time to research whether your parent is eligible for financial assistance programs like government-backed Medicaid, which covers services like home care and assisted living for people with dementia. Other assistance may be available from the Veterans Benefits Administration and some Medicare Advantage plans. To apply for any of these programs, you must gather all relevant financial documents, which will be easy if you store and organize them with Trustworthy. 

Aalberts, the Dementia Darling, suggests exploring shared housing arrangements to reduce costs and seeking grants from organizations like Hilarity for Charity, which supports caregivers.

Protecting Against Fraud and Financial Exploitation

The FBI Internet Crime Complaint Center reported that Americans over 60 lost at least $3.4 billion to fraud in 2023, an 11% increase over 2022. The actual number was surely higher.

Aalberts says common scams targeting seniors and individuals with dementia include telemarketing schemes, fake charities, government impersonation, lottery fraud, tech support scams, and "grandparent" scams. Additionally, financial exploitation by family members, friends, or strangers is a significant concern, she says. 

AI is fueling a new wave of scams, including those leveraging voice cloning technology.

One of the best ways to protect a parent from fraud and financial exploitation is to ensure they know what to look out for if they’re still able to. If not, then you should be aware of the signs to look out for.