LPA offers protection against financial abuse

People with dementia have been cheated out of at least £100 million, according to new research by the Alzheimer’s Society.

The figure is based on the charity’s estimate that up to 112,500 (15 per cent) of people with dementia have fallen victim to financial abuse including cold calling, scam mail, or mis-selling. There are an estimated 750,000 people with dementia in the UK.

The society’s report, Short changed: Protecting people with dementia from financial abuse, which was published on 14 December 2011, found that 62 per cent of the 104 carers questioned said the person they cared for had been approached by cold callers or salespeople on their doorstep, while 70 per cent were regularly targeted by telephone cold callers.

It suggested tips for protecting the finances of vulnerable people including discussing money management with family members, talking to their bank as soon as possible after a diagnosis has been made, in order to put in place extra support that may be available, and setting up a lasting power of attorney (LPA).

Guillaumes partner Neil Sapsed, a specialist in cases at the Court of Protection – which deals with issues involving people who lack capacity to make specific decisions – said: “An LPA is a useful insurance policy against a time when we can no longer make decisions for ourselves, and need to pass the responsibility on for issues such as paying our bills or making healthcare decisions to people we trust.

“However, an LPA must be put in place while the person making it still has mental capacity so, although it may never be used, it is a sensible move to take the necessary steps at an early stage, perhaps at the same time as making or updating a will.

“The survey found that 76 per cent of people had had difficulties in managing their finances, and 36 per cent of carers had had problems managing the money of the person they supported, which underlines how important it is to take advantage of tools like the LPA to minimise the stress and obstacles involved in dealing with financial issues in these situations.”

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