Diminished Capacity

Diminished mental capacity, due to Alzheimer’s disease or other forms of dementia, may impair a person’s ability to make appropriate decisions. This is particularly true in the area of finances.

If you are a caregiver to someone you think may have dementia, there are a number of steps you can take to safeguard their finances.

Know where financial documents are located and ensure they are in a safe location. These documents include:

  • Tax returns for the past seven years, including any W-2 forms, income statements, and canceled checks for deductible expenses
  • Bank statements
  • Insurance policies, including car, health, life, rental and/or homeowner’s insurance
  • Retirement plan and/or pension plan statements
  • Mutual fund and other investment statements
  • An inventory of assets owned and a record of major purchases
  • An inventory of debts and regular obligations, with a list of the institutions to which they are owed
  • Deed to home or other properties
  • Titles to vehicles
  • Important papers such as birth, marriage, death, and divorce certificates
  • Legal documents such as power of attorney, Living Will and/or Will
  • Any stock or bond certificates
  • Account numbers, passwords, and locations of safety deposit boxes
  • A list of important contacts, such as doctors, lawyers, and financial professionals

Additional Information

Elder Fraud