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Mark Reckman - When to give up financial control
- 2024/06/24
- 再生時間： 9 分
- ポッドキャスト
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サマリー
あらすじ・解説
A study published by American Economic Review in 2021 found that
most seniors in the U.S. have a person or agent in mind to take over their
finances in the event of cognitive decline. 81% have a family member in mind
and 19% have an institution or a professional in mind.
Here are the major challenges they found:
1) Not aware of one’s own decline;
2) Not wanting to give up control;
3) Agent is not aware of decline; and
4) Agent is not “available”.
Let’s talk about possible solutions:
1) Pick the right Agent. Agent must be:
a. trustworthy;
b. reliable;
c. “available” – which means they have both the time and the
“right” temperament; and
d. young and relatively healthy.
2) The Agent does NOT need to be:
a. close by (although that helps);
b. a relative; or
c. a medical or financial expert.
3) Sign a financial POA and medical POA:
a. does not have to be the same person;
b. name a backup Agent;
c. “refresh” the financial POA every 3-5 years; and
d. avoid the “springing” POA.
4) When it is time to turn things over:
a. file POA in local county;
b. file a copy of the POA with every company you do business
with – starting with the bank, broker and other financial
institutions. The medical POA gets filed with each healthcare
provider, doctor, hospital, and health insurance company.
When does the Agent “step in”? Depends on the individual. My parents
had a division of labor that was typical of the WW II generation. Dad
managed the money, and mom managed the house and the family. When
dad got bad, my mother did not want to manage the finances. She was plenty
smart – she was the valedictorian of her high school and nursing school. But
she had NO interest in finances. So, she gave it up immediately.
Other cases are very different. The Agent must look for clues like
bounced checks, late tax returns, unopened mail, double payments, etc.,
then offer to help – gently. It will take more than one offer.
most seniors in the U.S. have a person or agent in mind to take over their
finances in the event of cognitive decline. 81% have a family member in mind
and 19% have an institution or a professional in mind.
Here are the major challenges they found:
1) Not aware of one’s own decline;
2) Not wanting to give up control;
3) Agent is not aware of decline; and
4) Agent is not “available”.
Let’s talk about possible solutions:
1) Pick the right Agent. Agent must be:
a. trustworthy;
b. reliable;
c. “available” – which means they have both the time and the
“right” temperament; and
d. young and relatively healthy.
2) The Agent does NOT need to be:
a. close by (although that helps);
b. a relative; or
c. a medical or financial expert.
3) Sign a financial POA and medical POA:
a. does not have to be the same person;
b. name a backup Agent;
c. “refresh” the financial POA every 3-5 years; and
d. avoid the “springing” POA.
4) When it is time to turn things over:
a. file POA in local county;
b. file a copy of the POA with every company you do business
with – starting with the bank, broker and other financial
institutions. The medical POA gets filed with each healthcare
provider, doctor, hospital, and health insurance company.
When does the Agent “step in”? Depends on the individual. My parents
had a division of labor that was typical of the WW II generation. Dad
managed the money, and mom managed the house and the family. When
dad got bad, my mother did not want to manage the finances. She was plenty
smart – she was the valedictorian of her high school and nursing school. But
she had NO interest in finances. So, she gave it up immediately.
Other cases are very different. The Agent must look for clues like
bounced checks, late tax returns, unopened mail, double payments, etc.,
then offer to help – gently. It will take more than one offer.