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Luck Favors the Prepared

A Financial Toolkit for Fortifying Clients’ Finances for Security and Efficiency

Date: November 8 2024

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Case

Study

Managing Financial Independence with Cognitive Decline

Elderly client showing early signs of dementia, coupled with suspected personality disorder.

Challenges

Increasing paranoia due to memory gaps, leading to distrust and a need to monitor every financial detail.

Background

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Case

Study

Client wanted to review every bill, despite limited capacity to do so.

Concerns about privacy and security, especially with financial documents in a skilled nursing facility.

Reluctance to appoint a Power of Attorney (POA) due to privacy concerns.

Issues Faced

Compared to a Structured Client:

2 - 3 Times Time Spent
Many “Close Calls”
Lost IDs, Wallet (repeatedly)
Eventually realized they needed to structure.

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Case

Study

Client eventually agreed to partial delegation, preserving independence within capacity

Ensured financial security and oversight while addressing client’s emotional needs.

Outcomes

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Financial Fortress

Arrange financial accounts to create walls that limit vulnerabilities

Practical Steps to Organize

Financial Affairs

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Legal Documents

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Simplify & Consolidate

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Separate Communications

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Secure Communications

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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Does the client have the right legal documents in place?

Without these, it becomes difficult or expensive to act on behalf of the client.

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Estate Planning

Wills, Trust, and strategies

(PoD/ToD, Life Estates, etc)

Financial POA

Health Care POA & Support

(HIPAA Release, Living Will, DNR, POLST)

Types of Legal Documents

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Password Sharing

Educate client. Acknowledgement and liability release.

Permissions / Authorizations

For you to do certain tasks or communications on the clients’ behalf. Non-Fiduciary.

Types of Releases

I will not go into great detail on the releases and contract stipulations as that is legal advice and beyond the scope of this presentation. However, we do need to explain to clients about shared access and that it may violate the company’s service agreements. It’s also important to have the clients understand that if THEY don’t adhere to suggested security policies or best practices you cannot be held liable for consequences. Clients need to be educated on the options available for account access, limitations, and potential issues. Password sharing disclosures can be part of your service agreement or a separate release; contact your attorney for advice. Permissions/authorizations are releases that permit you to contact other professionals on their behalf - such as insurance agents, CPAs, and attorneys. HIPAA releases are also helpful to get in advance. Caveat: These work seamlessly 80% of the time; some companies will require their own documents, so let the client know that

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Review existing documents or create them with legal professionals.

Ensure everything is up to date and in place BEFORE emergencies.

ACTION STEP

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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Is the client’s financial situation easy to manage?

Simplified accounts ensure financial management is streamlined, reducing the chance of errors or exploitation.

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Consolidate Accounts

Vendor Selection

Transaction Alignment

Key Strategies

Consolidate Accounts – Reduce the number of bank accounts IDEALLY to just those necessary for savings, bills, and discretionary spending. For more complex households this may have separate household budgets/payroll accounts.
Vendor Selection - Do the vendors permit multiple, unique account access, convenience signer, and other tech that permits you and the client/trusted contacts to do your tasks without sharing a password? How open are they to accommodating families and professionals who provide services on behalf of a client and permit least restrictive access in that they require accountability and security but not excessive requirements such as a full PoA for everyone who has access.
How are things/activities paid. Match payment options to the safest method. Is the client going to be paying for things themselves and does the payment method offer a balance between convenience and security?

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Review and map lifestyle.

Eliminate unnecessary accounts

Vendor “fit” - Balance safety and accessibility.

ACTION STEP

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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Payment / Spending Tools

Issues checks and integrates into QBO & other online accounting. Document management features.

American Express debit card. No monthly or transaction fees.

Prepaid debit cards with backend extensibility to limit spending categories and/or vendors.

Relatively high monthly fees but useful to curb discretionary spending or focus spending in certain areas. Often used with caregivers to provide them tools to run errands/shopping.

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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Are communications around finances clear and separate?

Keeping financial and personal communications separate reduces confusion and prevents sensitive information from being shared with the wrong people.

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Tools

2FA sharing, LastPass,

Google Drive / Voice, Eversafe

Update Security

Secure & Organize Records

Key Security Measures

Separate Accounts and Communication Tools – Use different email addresses or communication channels for personal matters and financial management.
Update Security – Ensure only trusted individuals have access to financial accounts, statements, and emails. Use separate logins when available, always use 2-factor authentication.
Keep Records Organized – Maintain a secure system (physical or digital) to track communications and financial transactions. Login required, redaction software (Adobe, ABBYY, M-File) or document login for critical PII.
If the client cannot maintain their passwords or constantly locks out shared passwords, you may need to provide reports or a different system (such as Carefull or Eversafe that has bank feeds but non-transactional access) so they can view balances at their leisure. Some banks have call-in ability to retrieve balances, too.

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Set up separate communication tools for finances and vendors.

Make sure all financial documents and messages are stored securely.

ACTION STEP

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Separation Tools

Google Drive, Email, and Voice provide affordable ways to create a "Second Financial Life" separate from other personal communications.

PO Box provides security. Provided to important vendors so documents don't get lost or misplaced.

A communications portal for trusted contacts and caregivers to share notes, documents, and messages.

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5 Stages of Protection

Legal Documents

Simplify and Consolidate

Arrange Financial Accounts

Separate Communications

Secure Communications

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Are financial communications secure?

This prevents fraud, unauthorized access, and identity theft. Vulnerable people are particularly at risk. Securing communications is essential for their protection.

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Separate communication tools & update vendors

Not just finance but other vendors too)

Enhanced security measures for accounts and docs.

Store documents & communications securely

Key Security Measures

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Review your current communication methods

Upgrade to secure systems for handling sensitive financial information

ACTION STEP

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Security Tools

Online password system is critical for shared passwords. Enabling very strong passwords without the overhead of remembering them.

Shared 2-Factor Authentication allows more robust security set ups without the hassle of having to call the main person to get the security code.

Bitdefender offers comprehensive cybersecurity solutions that are user-friendly for seniors, providing robust protection against malware, phishing scams, and identity theft to safeguard their financial information. Advanced versions also have a password keeper, although no sharing (at publication).

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Security Tools

If PO Box or receiving business mail elsewhere isn't practical, but there's high traffic in the home. Put in locked room or lockable cabinet.

While weaning off checks completely is preferred, use non-erasable/unwastable pens to ensure checks cannot be 'repuposed.'

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Security Tools

Phone systems for landline (left) and mobile/Bluetooth (right) can be configured to "whitelist" trusted contacts and vendors to call through.

Others are blocked outright, required to enter a code, or routed to voicemail.

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Monitoring Tools

Online monitoring services that include bank/card data feeds, credit and title monitoring, and other services. Great way for folks to be able to view their bank balances without accessing the account.

Designed for families with young children, it is a very comprehensive web and communications filtering and monitoring solution.

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Stages

Recap

Legal Documents

Are the right documents in place?

Review/create documents legal professionals.

Up-to-date and in place BEFORE emergencies.

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Stages

Recap

Simplify and Consolidate

Is the financial situation easy to manage?

Map your clients’ lifestyle & financial accounts.

Eliminate and automate, and put safeguards in place.

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Stages

Recap

Arranging Financial Accounts

Have you structured accounts to protect against exploitation?

Does every account have a purpose?

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Stages

Recap

Separate Communications

Are financial and personal communications clearly separated?

Use tools to separate communications for finance

Store documents and messages securely

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Stages

Recap

Secure Communications

Are financial communications protected?

Review current communication methods

Upgrade to secure systems

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Do you have the right protections in place for your client’s finances?

ASK YOURSELF

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Are there gaps in your current approach that could lead to vulnerabilities?

ASK YOURSELF

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What’s your plan to take the first steps?

ASK YOURSELF

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Contact Me

Shannon Tefft-Janes, MBA

Shannon@IndependenceNavigator.com

(737) 337-4357 (Mobile Business)

IndependenceNavigator.com

In/Shannon-Tefft-Janes

Facebook.com/IndependenceNavigator