Financial Safety for Seniors with Dementia: What Every Family Should Know

When families talk to me about caring for a loved one with dementia, the first thing they share is how determined they are to keep them safe — physically, emotionally, and financially. As the CEO of ComForCare San Fernando Valley, I’ve met countless families across Los Angeles who shoulder this responsibility with love and courage.

But I’ve also seen something far too common — how quickly a person with dementia can become the target of financial exploitation. It’s one of the most heartbreaking parts of this journey, and one that too few families are prepared for.

“Financial protection is an act of love — not just a legal decision.”

That’s why I want to talk about something many people don’t know enough about: fiduciaries — the professionals who protect seniors’ finances when they can no longer do so themselves.

When Memory Fades, Vulnerability Grows

Think of Martha, a bright, independent woman in her 80s who once managed her household budget to the penny. As her dementia progressed, she began to forget conversations, misplace important papers, and lose confidence in her judgment.

When an “IRS agent” called demanding immediate payment, Martha didn’t question it — she simply wanted to make things right. It was only later that her daughter realized the scam had drained thousands of dollars from her account.

Sadly, stories like Martha’s are common. People living with dementia may:

- Pay the same bill several times.

- Feel pressured to give away money but can’t explain why.

- Forget who has access to their accounts.

- Withdraw large sums for reasons they can’t remember.

These lapses don’t come from carelessness — they come from a brain under stress. Dementia gradually affects reasoning and impulse control, making it easy for bad actors to step in. That’s why families need more than compassion; they need a protective plan.

What a Fiduciary Actually Does

A fiduciary is a trusted professional who is legally and ethically bound to act in someone else’s best interest. They’re often appointed through a Durable Power of Attorney or by the court when a person can no longer manage their own finances.

In simple terms, a fiduciary is a financial guardian. They:

- Pay bills, manage accounts, and oversee investments.

- Track every expense to ensure it directly benefits the senior.

- Protect assets from misuse by outsiders — or even well-meaning relatives.

When my care team and I work with families, we often see the peace of mind a fiduciary brings. They’re the silent safeguard — the person who makes sure every dollar supports your loved one’s care, safety, and dignity.

Think of them as part of your care team, not just your paperwork. They protect what your loved one worked for so that you can focus on loving them.

If you’d like to understand what fiduciaries do in more depth, visit AgeWise Alliance’s resource library (https://www.agewisealliance.com).

Building a Shield: How Fiduciaries Prevent Exploitation

A professional fiduciary’s first step is to secure every financial account and document. They might:

- Consolidate accounts for easier oversight.

- Set up two-person verification for large withdrawals.

- Block suspicious phone numbers or mail solicitations.

When something unusual appears — a sudden withdrawal, an odd recurring charge, or a “new friend” who shows financial interest — the fiduciary investigates immediately.

Because they’re trained to spot patterns of fraud, they often catch problems before they spiral. Many also collaborate with Adult Protective Services or the LAPD’s Elder Abuse Unit when necessary.

And unlike a family member juggling caregiving, work, and stress, a fiduciary has the time and objectivity to focus solely on financial protection.

Why Families Feel Such Relief

Watching a loved one decline is already painful. Adding financial fear to the mix can feel unbearable.

I think of Mary, who cared for her mother Helen. Mary was so busy managing medication schedules, doctor visits, and meals that she had no energy left to monitor bank accounts. She lay awake at night worrying someone might take advantage of Helen.

Once a fiduciary stepped in, Mary could finally exhale. She stayed involved — reviewing reports and asking questions — but she no longer carried the heavy weight of constant vigilance. Instead of being her mother’s financial guardian, she got to simply be her daughter again.

“Peace of mind isn’t just for your loved one — it’s for you too.”

That emotional relief changes everything. When families aren’t consumed by financial fear, they can be more present, patient, and connected — which benefits everyone involved.

Fiduciaries and Care Teams: A Partnership That Works

Caregiving teams can focus on helping seniors stay safe and comfortable at home by assisting with meals, medication reminders, and meaningful companionship.

But true well-being goes beyond physical care. It includes emotional security and financial safety. That’s why I believe the best approach is a partnership:

- Families provide love and familiarity.

- Caregivers offer daily support and dignity.

- Fiduciaries ensure the financial safety net stays strong.

This three-part collaboration forms a circle of protection that keeps seniors safe on every level.

Taking the First Step

If you’re caring for someone with dementia, here’s what I suggest:

1. Talk with an elder law attorney about power of attorney and fiduciary options.

2. Interview potential fiduciaries — choose one with experience in dementia cases.

3. Stay involved. Ask for regular reports and keep open communication.

Protecting a loved one’s finances is an act of love. It lets you focus on what matters most — being there for them, heart to heart.

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About the Author

Robel Gugsa is the CEO of ComForCare San Fernando Valley, where he and his team provide compassionate in-home care for older adults across the San Fernando Valley. He is deeply committed to helping families protect their loved ones with dementia — not only through hands-on support, but also by raising awareness about financial exploitation and the vital role of fiduciaries.

For more visit: https://www.comforcare.com/california/san-fernando-valley/

To learn more about fiduciaries and other trusted professionals who help families safeguard the well-being of older adults, visit AgeWise Alliance (https://www.agewisealliance.com) — your guide to expert help, reliable resources, and peace of mind.

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About AgeWise Alliance

AgeWise Alliance provides the answers and professionals that older adults and their families need to navigate the challenges of later life. From finding trusted professionals in legal, caregiving, and financial planning to offering practical resources and expert advice on senior living communities and insurance, we make the later life shift easier for everyone.

Visit AgeWiseAlliance.com or follow us on Instagram at @agewisealliance to learn more about how we can support you and your loved ones.