Money issues: Diminished mental capacity

Sunday, 24th May 2009 17:10 - by Resident IFA

It is 4.45 p.m. on a gorgeous 24-degree Bank Holiday Sunday…so I will keep it short and sweet! Earlier in the week, I was approached by an Officer representing a (not particularly) Local Authority in connection to an elderly Gentleman’s financial affairs. They had a Court Order that specified their control over the finances of the person in question, him now residing in a care home and suffering from senile dementia or the like. As with a lot of people who are now in his age bracket (80’s), he has amassed various financial products over the years, including a number of shareholdings. I must admit that I hesitated for a second when I reached the ‘Attitude to Investment risk’ section of my Financial Review form. How do you assess a person’s attitude to risk who isn’t there, effectively has no say over matters, and cannot now comprehend simple day-to-day matters anyhow? Simple…treat the money as if it were my own, carefully analysing the products currently in place and what the monies need to achieve from now on. Are the current products appropriate? What improvements/changes, if any, can be made? How can I help this elderly man and his family avoid money-related worries from now until he dies? The main focus of my financial review will be to ensure that the Gentleman has adequate monies to match his outgoings and care fees. I have all the factual information I need to do this, so let the respectful financial advice commence. Right, it is now 5.10 p.m. and that’s me done! Enjoy the good weather. Until next time…