Navigating Aging: How to plan for “what if?”

Nadia Manara, Global Fraud Awareness

Christine Ward, Global Fraud Awareness

Every age has distinct vulnerabilities. For the elderly, diminished mental acuity, illness and accidents have the potential to trigger a crisis that engulfs a family—unless certain protections and protocols are put in place. 

Creating this type of safety net requires “what-if” planning: Taking steps to ensure at least two trusted individuals are granted the authority and information access to act on your—or an aging relative’s—behalf in the event of an emergency.

Such protection can be especially important for people over 60, a population the U.S. Federal Bureau of Investigation says is most vulnerable to financial scams.¹ Fraud schemes work precisely because they appear to be plausible, are often scary and aim to provoke an immediate response. If you or a member of your family become a target, significant assets may be put at risk.

Here are six ways to make sure you and your loved ones are protected.

1. Stay current on threats—and prevention best practices

Learn what’s happening in the marketplace, and take whatever steps are needed to protect yourself and your family. Whenever possible, take advantage of any enhanced account protections your financial institution makes available.

2. Create a central information repository

Organize and store relevant personal, financial and medical information in a secure central repository that your designated agent(s) and family members can access in case of an emergency, including:

• Financial statements showing an institution’s name, the account type and ownership, banker/broker contact information, etc.
• Copies of wills, trusts, powers of attorney, healthcare proxies and other directives 
• Social Security records, birth certificate, account passwords and other personal data
• Contact information for attorneys, accountants, doctors, insurance agents, banks, financial advisors and other key third-party service providers
• Inventories of related holdings, such as real estate, artwork/collections, aircraft, businesses and other assets

Note: Given the sensitivity and value of such documents, an unlocked desk or home office that many people can access is not an optimal location. Also keep in mind: Financial exploitation/identity theft of deceased family members can take place if sensitive information (even in an obituary) falls into the wrong hands.

3. Empower others to serve as your agents

In the event of an emergency, estate plans or nearer-term goals may be put at risk if no one has the authority to act on your behalf. Two ways others can quickly come to your aid:

Grant power of attorney—A power of attorney (POA) that is properly registered on your accounts allows a trusted individual to take immediate action and grants them:

• Visibility into your plans
• Access to your accounts
• Authority to speak with your professional advisors and others

Note: Financial institutions often have their own POA-registration requirements. If you do not fill out the appropriate paperwork in advance, your agent may be delayed in taking action in the event of an emergency.

Name a trusted contact—If you do not wish to put a POA in place, consider naming an emergency point of contact and prepping them in advance of a problem occurring; for example, by providing them with contact information for select family members, advisors, business partners or others.

These are not mutually exclusive designations. You may be optimally served by having more than one individual take charge of your affairs if you are unavailable or incapacitated.

4. Involve all relevant parties

To put strong protections in place, have frank conversations with all relevant parties: partners/spouses, select family members and trusted professional advisors.

Assigning at least two individuals to act on your behalf in an emergency can lessen their burdens, make it easier for timely reviews to take place and curtail opportunities for fraud. Also think about proximity: Matters can be addressed more quickly when at least one emergency contact lives nearby.

Other best practices: Assign separate responsibilities to each designate, and make sure they are individually aware of the other’s role, the location of your documents and the scope of your directives.

5. Inform financial advisors of your plans

Make sure your financial advisors know how to reach your designated emergency contacts in the event you become incapacitated or cannot be reached. Your advisors’ insights and recommendations can aid the implementation of your plan or help recover funds in the event of a scam.

6. Keep documents and authorities up-to-date

Personal and professional circumstances change over time. Therefore, it is important to regularly review and update:

• Account authorities—Ensure the right people have access to your accounts and information
• Estate plans and directives—Enable those authorized to act on your behalf to accurately carry out your wishes

We can help

Your J.P. Morgan team can answer your questions, provide advice on how to monitor your account for unauthorized activity and update you on emerging threats in the marketplace.

If you would like to schedule a fraud awareness session with our specialists, please contact your team. Meanwhile, we encourage you to implement the security protections summarized in this checklist.

¹ In 2022, the FBI reported $3.1 billion in losses for fraud victims over 60 years of age. As those in this population are less likely to report fraud, it is assumed this figure is much higher.