Safeguarding Finances in Dementia Care: An Interview with Brian Freedman

When someone you love is living with dementia, money questions can feel especially overwhelming. Bills, benefits, tax returns, fraud risks, long term planning – it can all start to pile up just as you are also trying to manage day to day care. To help make this feel a little more manageable, we spoke with Rebecca Eddy and Brian Freedman of the Eddy & Schein Group, a firm that specializes in helping older adults and their families organize, protect, and manage their day to day finances. In this conversation, Rebecca and Brian share practical, down to earth advice on how to get started, what warning signs to watch for, and how to build a support team around your loved one and their money. 

1. From your perspective, what are the biggest financial challenges older adults and their families are facing right now?

Due to declining health or executive function, there can be a decrease in organization of incoming mail, the possibility of bills not being paid, checks not being deposited, or tax returns not being submitted. In addition, older adults are at greater risk of becoming victims of fraud.

2. Money can be a sensitive topic. Do you have advice for how families can talk about finances without it turning into conflict or hurt feelings?

This is one of the biggest challenges no matter whether it is with an aging parent or a young adult. One suggestion is to begin by asking for advice or sharing financial issues you are juggling. Breaking the ice by showing that you don’t have all the answers may lead to parents opening up. Be sensitive as they may be embarrassed by mistakes they are making or their confusion over finances, or they may have been raised to not talk about money. Have these conversations in small doses so as not to overwhelm them. 

4. Are there simple habits or systems you recommend to help keep bills, accounts, and important papers organized as dementia progresses? 

Try to set up one place where mail is placed when it comes in (or have the mail go to another address).

Plan on regular visits to review the mail and to make sure papers are not wandering around the house. If possible, have that person scan important documents and file them electronically, so you have backups to the papers. If there is a trusted companion/home health aide, you can elicit their help in corralling and storing the mail until your next visit.

Have someone be responsible for bill paying and acting on mail that needs addressing, even if it means sitting with the loved one and chatting while they do the work, providing guidance as needed. At some point their dementia will progress to the point where they are no longer able or want to handle the work, which is when an agent under POA should take over.

5. Are there any early warning signs that a loved one may be vulnerable to financial exploitation or already being taken advantage of?

This is a hard one since loved ones may not share that they are giving money to other people, or that they have been scammed. Having someone who can review bank, investment and credit card statements regularly is helpful to at least put a stop to fraud before it goes too far. If the person is becoming more isolated, or if you hear them give out personal information on the phone, or they talk about being in love with someone they met online, these can be some of the indicators that the person is vulnerable. Remind them regularly that the IRS, Social Security, the Sheriff’s office, Amazon, etc. will not call and ask for personal information or demand payments.

6. What types of professionals can be most helpful for families navigating dementia and finances, and how can they find someone trustworthy?

Daily Money Managers (DMMs) are professionals who are committed to helping clients and their families handle their day-to-day finances, monitor spending, check for fraud, and coordinate with their other trusted advisors. 

A search for DMMs can be done on the website of the American Association of Daily Money Managers (AADMM), www.aadmm.com. Members of AADMM abide by a code of ethics and standards of practice, have been background checked and should carry errors and omissions insurance. 

7. Is there a simple financial “checkup” or checklist you wish every family would do once a year?

Start with this document checklist. Once everything is collected, it is helpful to review the list and make sure that all documents are up to date, secured, and would also be available in case of an emergency. Look over wills to make sure that they still reflect the current reality of assets, beneficiaries and executors.

8. Finally, what is one reassuring thing you wish every dementia caregiver knew about managing money and protecting their loved one?

As overwhelming as this stage of life can be, focus on the positive bonds; your loved ones will remember your tone of voice and the feeling of being cared for, even if they cannot remember what you told them. Make time for them socially as well as addressing their finances and identifying ways to protect them. There are amazing resources in the professional elder care community that can support you.

Caring for a loved one with dementia is hard enough without the added stress of trying to untangle paperwork, monitor accounts, and stay ahead of potential scams. As Brian reminds us, you do not have to do all of this alone, and there are professionals and tools that can help you protect both your loved one and your own peace of mind. We hope this interview offers you a starting point and a bit of reassurance as you take the next steps.

If you would like support navigating dementia care more broadly, from organizing care at home to getting the most out of programs like Medicare GUIDE, the Lizzy Care team is here to help you and your family find a clearer, more supported path forward.

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Lizzy Care is reimagining dementia care for your whole family. We provide personal care for people living with dementia and a vast array of support for families who want to make sure their loved one is getting the best care possible. Our best-in-class app helps doctors, caregivers, and families easily stay in contact to make sure the care plan is on track and communicate important information. Please reach out if you need help caring for someone in your life who is living with dementia. Get in touch or call us at 234-567-9449.