Besides impacting lives and relationships, dementia can also impact family finances. It may call for another family member to assume money management responsibilities for a parent, grandparent, or sibling. It may increase the risk of financial exploitation, even as we do our best to guard against it.
How frequently do older adults experience memory disorders? Here are two recent estimates. The Chicago Health and Aging Project figures that nearly a third of Americans 85 and older have Alzheimer’s disease. The National Institute on Aging sponsored a study, which concluded that 14% of Americans age 71 and older have dementia to some degree.1 Older women may be the most vulnerable of all. A new Merrill Lynch and Age Wave study notes that after age 65, women have twice the projected risk of Alzheimer’s that men do.2
In the best-case scenario, parents or grandparents acknowledge the risk. They provide financial maps and instructions, instructing adult children or grandchildren about the details of their finances. They include a trusted financial professional in the arrangements and introduce him to the next generation. This communication occurs while the elder still has a sound mind.
