It is tough to know when you should step in and help your parents with their finances. You may go back and forth about when to take over. Deciding whether your parents still have the cognitive ability to manage their money is a difficult call to make. A recent report reveals why it may be important for you to get involved.
The Study Results
An analysis published in September 2022 showed that seniors with cognitive impairment are struggling to handle their financial affairs. Reviewing a survey of 8,800 men and women aged 65 and older, the researchers found that seniors continued to maintain control over their finances even when experiencing some sort of cognitive decline.
In the population studied, almost 14 percent of these older adults suffered from cognitively impaired nondementia (CIND). Another 6 percent were experiencing dementia.
The study reported that cognitive impairment problems disproportionately affected groups who reported having less education or who identified as a member of a racial minority group.
Does Your Parent Show Signs of Cognitive Impairment?
There are some signs that may indicate diminished cognitive ability. Watch out for the following if you suspect your parent is experiencing diminished mental capacity:
Are Your Parents’ Financial Resources at Risk?
If your parents have a large estate, you should take care to determine whether they have any cognitive impairment. The study found that many of the men and women surveyed had large amounts of money or property valued at more than $100,000.
“Risky” financial assets, like valuable stock portfolios, may be “particularly susceptible to mismanagement” in those with cognitive impairment, the researchers state.
What Can I Do For My Parents?
Ensuring that your parents are properly cared for as they age is a priority for many children. However, knowing what you can do for your parents’ finances if they have any cognitive impairment is hard.
If you suspect your parents are having a difficult time managing their money because of a cognitive deficiency, consider the following.
If you suspect cognitive impairment, but have not confirmed it, you may wish to appoint a power of attorney or a financial agent to handle your parents’ financial affairs. Speak with Ashley Day for assistance.