When a Family’s Financial Decision-Maker Faces Changes in Health
How families can prepare for changing circumstances, strengthen safeguards, and manage evolving financial roles.
We frequently encounter families where one individual has assumed the role of primary financial decision-maker for the larger group. This may be a parent—a trusted family patriarch or matriarch—who understands all the moving parts, such as investments, financial planning, bill payments, and estate planning. This person knows where important documents are kept and serves as the main point of contact for financial professionals, such as financial advisors, CPAs, and estate attorneys. Over time, family members grow used to this arrangement and assume it will never change.
However, as the years pass, this individual may face health issues or experience shifts in cognitive function. These circumstances can be difficult—including the emotional strain of watching a loved one change— but also may have unexpected financial consequences beyond the expenses of care. Approaching these challenges with sensitivity and acting early can help families prepare and protect their financial well-being.
If your family is facing this situation now or may face it in the future, the following are some possible ways to respond.
Recognize the Early Warning Signs
You may notice early signs that your family’s financial leader is having difficulty managing financial responsibilities. These signs can include missed bill payments, unusual or impulsive purchases, trouble keeping track of accounts, passwords, or paperwork, falling victim to cybercrime or scams, or giving away money in uncharacteristic ways. Keep track of these signs and look for trends.
Starting the Conversation Early
Once you understand your family member’s health situation and observe the early warning signs, it’s important to have an open discussion with both the individual and other family members. Raise concerns without judgment, and approach the situation as a collaborative effort rather than immediately taking away control.
Put in Place Safeguards
As your family member’s health changes, it becomes important to implement safeguards that can adapt over time. Legal tools to assist may include a power of attorney, health care proxy, joint accounts, trusted contact designations at financial institutions, revocable trusts, wills, advance directives, and beneficiary designations.
Financial safeguards might involve automatic bill pay, credit monitoring, lower spending or withdrawal limits, or consolidating accounts. Set up these measures early, while your family member can still participate in the decision-making.
Inventory the Financial Picture
Assemble a secure and organized record of bank and investment accounts, bills, insurance policies, real estate holdings, retirement benefits, tax information, key legal documents, login instructions, and professional contacts. In particular, designating a trusted contact for your family’s financial institutions may grant certain permissions.
Protect Against Exploitation
A period of declining health —especially cognitive health—can make an individual more vulnerable to fraud and undue influence. The threat may come from cybercriminals or even people they know personally. Warning signs include unexplained withdrawals, sudden changes to wills or beneficiaries, unfamiliar checks or transfers, and questionable friendships that quickly lead to requests for money.
Welch & Forbes: Helping Families Responsibly Manage Their Wealth During Changing Health
At Welch & Forbes, we have guided many families through the evolving dynamics that arise when a financial decision-maker faces health changes. Throughout this process, we often work more closely with the next generation, relatives, and other trusted contacts as they become more involved in the family’s finances. Our commitment remains the same: to provide the guidance, financial management, and support families need as they navigate life’s transitions.
If you are interested in the services and support Welch & Forbes can provide your family, please contact us online or call our Client Development team at 617-557-9800.
Disclosure: This information is provided for educational purposes only and does not constitute investment, financial, tax, or legal advice. Consult your tax advisor or legal counsel for advice and information concerning your particular situation. Welch & Forbes, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.