Indicators of diminished capacity will not always be so obvious to you, particularly if you are interacting with a an aging loved one, especially in a situation where you m ight be dong most of the talking or directing the conversation. While you may be asking them some specific questions, whether they involve a real estate matter, a legal transaction or case or accounting matter, and you could miss the signs that the individual is beginning to develop cognitive problems. If you are asking things in such a way, like “Do you understand?” or "Does that make sense?"and they answer is “yes” that is not a way to test whether they really did understand or not. You will need to do more, and ask a little more in-depth, if any warning sign pops up when interacting with an aging loved one.

Cognitive problems could be developing even if the individual is able to answer most of your questions. You won’t spot cognitive decline unless you are looking for the subtle signs that tell you that they are not quite as sharp as you’d like. If you probe a bit more, you may find that the person lacks the judgment to do what you is being asked or needed of them to do. Or, they may not be able to appreciate the financial impact of a decision they are being asked to make. Things could go wrong if you do nothing or ignore some of these red flags.  

When a person is impaired, they can be easily manipulated. They may also fear being “found out” that their memory is as bad as it really is and they may be trying to hide the fact. A person left to their own devices in this situation could make dangerous choices or certainly become subject to financial abuse by others.  

1. Short Term Memory Loss: Have they missed some appointments recently? Could they not recollect a recent conversation or phone call that you had with them?

2. Disorientation: this may be about time or place. Are they unsure about what day it is or where they live or are located?

3. Communication Problems: a lack of ability to state what they want to say or articulate a thought. Is the person unable to find the words?

5. Lack of Mental Flexibility: inability to plan: When a person becomes fixated on an idea and you can’t dissuade them with logic. When the person can’t look ahead at the consequences of what they are doing now. This is certainly an indicator of a potentially bigger problem.

6. Calculation Problems: they may say they know the math but can they do the math? If you go to lunch, do they have trouble with the calculating the tip or making change?

If you see any one of these signs, proceed with caution. You must explore the problem more deeply and not just dismiss it as “(so&so)’s getting old”. If your loved one is impaired, their diminished capacity, especially when dealing with finances could expose then to some very bad sitautions or consequences.

The ARIES Foundation for Financial Education, Inc. is a nonprofit dedicated to helping everyone have a better realtionship with their money. And dealing with a loved one who is showing some of the warnings signs is a very difficult relationship to be in, for them and sometimes for you. You can reach us info@ariesfoundation.org or visit our webiste to learn more www.ariesfoundation.org