Banking Considerations for Individuals with Caregivers

For individuals who rely on caregivers, whether due to aging, disability, illness, or recovery, banking can feel overwhelming, and sometimes even scary. While trusting someone else with your finances can be uncomfortable, caregivers managing daily finances is common, and in many cases, necessary.

A Peace of Mind with Help from a Caregiver

Caregivers often provide invaluable support when it comes to managing finances. From paying bills on time and handling paperwork to tracking medical expenses and communicating with financial institutions, caregivers help reduce stress and ensure day-to-day financial needs are met.

Their involvement can prevent missed payments or late fees, protect credit, and bring consistency when supported by clear guidelines and the right banking tools. Caregiver involvement can greatly enhance financial stability while allowing individuals to focus on their health and well-being.

While paying bills and handling daily transactions can be an essential responsibility of a caregiver, it is equally important to protect financial independence, dignity, and security of the individual receiving care. Thoughtful banking strategies can help families and caregivers work together while reducing the risk of confusion, errors, or financial abuse.

Let’s take a dive into some key considerations to help ensure bills get paid and finances remain safe, transparent, and well-managed.

1. Power of Attorney (POA): Authority with Boundaries

A Power of Attorney allows a trusted person to act on someone’s behalf for financial matters. Many times, this trusted person is a family member, but those individuals without family members may use a professional caregiver.

Key points to understand:

• POA can be limited to specific tasks
• A POA remains in effect if the individual becomes incapacitated
• POA authority ends upon death

Important considerations:

• Choose a trusted individual with strong financial judgment
• Provide banks with the proper legal documentation to avoid delays
• Understand that POA does not give ownership of funds

2. Joint Accounts vs. Authorized Users

Many individuals add caregivers to accounts for convenience – but this decision should be made carefully. Before adding someone to an account, it’s important to understand the different ways you can give them access to your account.

Joint accounts:

• Give both parties ownership of funds
• Expose assets to the caregiver’s debts or legal issues

Authorized users or signers:

• Allow transaction access without ownership
• Offer better protection and clearer boundaries

When possible, discuss safer alternatives with a banker to maintain oversight and control over your finances.

3. Safeguards Against Financial Exploitation

It’s unfortunate, yet true, that there have been instances where professional and personal caregivers have misused funds, which is why it is extremely important to set up protections accordingly. Many banks offer tools that help protect account holders while maintaining autonomy.

Protective measures include:

• Transaction alerts for withdrawals, transfers, or large purchases
• Daily spending limits on debit cards
• Dual-notification alerts sent to both the account owner and a trusted contact
• Account activity reviews scheduled monthly or quarterly
• Separation of funds, such as using one account for daily expenses and another for savings

These tools help detect unusual activity early and provide accountability without removing independence.

PROTECTING YOUR LOVED ONES FROM ELDER FINANCIAL EXPLOITATION

4. Designating a Trusted Contact

Many financial institutions allow customers to name a trusted contact person that they can reach out to if they notice suspicious activity or signs of financial abuse. This is why it is important to meet with your banker when giving anyone, including caregivers, access to your finances and information.

A trusted contact:

• Does not have transaction authority
• Adds an extra layer of protection for vulnerable individuals

This is especially helpful when memory issues or cognitive decline are a concern.

5. Supporting Financial Independence with Structure

Even with a caregiver’s help, individuals should remain as involved in their finances as possible.

Ways to encourage independence:

• Use automatic bill pay to reduce stress
• Maintain clear records of expenses and transactions
• Review bank statements together
• Set up simple budgets for personal spending
• Use online banking tools designed for accessibility

Financial inclusion builds confidence and helps to preserve dignity, while also developing a routine which can be helpful in many of these situations.

6. Open Communication and Documentation

Transparency is key to healthy financial caregiving relationships. It is especially beneficial to include your banker in these conversations and provide them with documentation for an additional layer of protection. Community banks tend to prioritize customer relationships and can be very helpful in these instances.

Helpful habits include:

• Written agreements outlining financial responsibilities
• Keeping receipts and transaction logs
• Regular family check-ins about financial needs and changes
• Involving a third party, such as a banker or financial advisor, when needed

Clear documentation protects both the individual and the caregiver – not to mention, it makes it easier to pick up on any possible financial abuse.

7. When to Ask for Help

Right away. When any changes are being made to your account that involve giving someone else access to your accounts, you should always contact your bank – not just to make the change – but to ensure you’re doing everything you can to protect your finances.

If you suspect financial abuse:

• Contact your bank or financial institution immediately
• If confirmed, report any concerns to appropriate agencies (like the police) or seek legal advice

Banks are trained to identify red flags and can be valuable allies in protecting vulnerable customers.

UNAUTHORIZED ACTIVITY ON YOUR ACCOUNT? WHAT TO DO RIGHT NOW

Banking for individuals with caregivers requires a balance between access and protection, help and independence, and trust and accountability. With the right safeguards in place and good communication, families and caregivers can work together to ensure financial stability and peace of mind.

A trusted banking partner can help guide these conversations and tailor solutions that help meet everyone’s unique needs. Contact your trusted banking professional at Shore United Bank today to discuss your account protections.

CONTACT SHORE UNITED BANK