Hi
Is there a designation for an elder who is not competent to make financial decisions for himself? Specifically, our elder is burning through the estate's funds, most of this is due to his insisting on living in a place that is way way too expensive for his income. He is spending through the money left to him (e.g. the family savings), and at this rate will be destitute within the year. How can we intervene before he spends everything? I'm talking about moving him out of place that is too expensive, and into a place that is more affordable, when he refuses to.
thanks
Does anyone have Power of Attorney?
Has he always been irresponsible with money?
He's not being realistic or logical at all, but would pass a mental status exam.
The best thing that you can do is to be clear with him that when he does run out of money, and this "magical" something that he things will happen, doesn't happen, that you will not be there to clean up the mess, that you will not have him live with you, nor support his bad decisions.
Angel
Did his wife not leave the money encumbered in some way, or in someone else's hands for management?
What to do? Anyway of placing his money into a secure place and just give him an allowance to live on? That way if he runs out of his budgeted allowance before the end of the month and can't buy this or that, maybe that will be a wake-up call for him. And he wouldn't get his next allowance until the 1st of the following month.
I had to take over my Dad's finances mainly because he was just the opposite, he didn't want to spend any money and would throw out bills that needed to be paid.
Perhaps you and your relatives could be the "it'll work out" solution by suggesting that your "elder" allow you to help him manage the funds and extend the time before he'll run out of money. Take the position that he's helped you during his life, etc., etc., and you want to help him now. Flatter him, get him on your side. Criticizing his frivolous ways, as that seems to be a legitimate assesment, will only push him farther away. So, how can you get him on your side?
Otherwise, he's going to be broke, will need to apply for Medicaid and likely won't get it if he's foolishly wasted his money. He'll be stuck in a no money land waiting for the 5 year Medicaid lookback period to pass because his money has been spent on things other than his own care.
You write that he's "long been irresponsible". If this is a pattern, it's not going to change now, unless the underlying reasons are addressed.
I think also that there's an underlying issue to his unwillingness to address reality, and it could be that spending money makes him feel good, especially after he's lost his wife.
There's an economic term for the high that people get from spending money, but I don't recall what it is. It was one of the first tenents of economics I learned. It's a kind of self induced illusion that by spending money, an individual is better off than he/she really is; it's a type of self delusion.
A behind the scenes activity is to find a more financially suitable place, then discuss with the facility he's in now and make them aware that he will run out of money this year, and at that point will be unable to stay there. They may not care and are willing to accept his money now, but you might be able to find a social worker who sees the handwriting on the wall and will work to find an excuse to encourage him to go elsewhere, where it's more reasonably priced.
While there might not be any incentive to do that, there is always the good will of the facility, and good will is in fact a legal and financial commodity.