Different types of services that may be addressed are:

Daily Money Management

Durable Power of Attorney

Conservatorship

Representative Payee

Household Management

In order to best determine what solution maybe most appropriate, there are 6 fundamental areas to address.   These areas are not in any specific order and are most often used in combination with each other when trying to assess what services will work best.

1.  Does the client have capacity to make decisions for themselves? 

If your client has very limited or no capacity at all then it is likely that daily money management or power of attorney services will not be options for them.   In most cases, both services would require that the person be able to make decisions. 

Of course there maybe exceptions in some situations where adult children can hire a daily money manager to work with their parent or if a current agent is given the authority in a POA document to choose a successor agent of their choice. 

 Capacity usually plays a part in most services.

2. What types of assets are involved and what is their value?         

For example: Do they have real or personal property?  Bank accounts?   Investments? Vehicles?  Are they on government programs such as Medicaid? Is the person’s estate worth $10,000 or $10,000,000?  

Sometimes the type and value of someone’s estate can warrant the decision of a particular service plan such as a Conservatorship versus Representative Payee.    

3.  What type of monthly income do they receive?

This becomes important if the only form of income is Social Security; this also includes SSI and SSDI benefits.  If this is the case and we have determined that they have little to no capacity and limited assets then they probably only need Representative Payee instead of a Conservatorship.

 If they have multiple forms of income in addition to Social Security then you will need to add another service on top of Representative Payee in order to have the authority to manage the other income. 

 4.  What are the family dynamics?

If we need to protect the person’s assets from the family then daily money management is usually not the best fit.   Again, depending on whether or not your client has capacity, I would suggest a more supervised or controlled arrangement such as a Trust, POA or Conservatorship. 

 5.  What control or participation level does the client want to maintain?

Depending on a person’s level of capacity, they may want to have as much or as little involvement in the overall day to day management of their affairs.  This information is important to know as it may change the level or type of service provided.

 6.  What estate planning, if any, has already been done?

Does the client already have a power of attorney, a will or trust document in place?   Sometimes a family member who is currently acting as an Agent under a trust or power of attorney no longer wants to assume that role and it is often necessary to determine what type of flexibility those documents may have. 

Determining what type of service a person may need is not a one size fits all approach.  Every person’s personal circumstance is different and it’s important that all possible solutions be evaluated prior to making a decision.   

If you have a client that is in need of money management services but aren’t quite sure what would be the best route for them please call me and I will be happy to discuss some options with you.

We know it’s a nationwide crisis and with the baby boomers aging, it’s only going to get worse.  

Here are some tips for things that family members can do to best protect their loved ones from being financially abused.  Please note that you will need the older adult to agree to most of these suggestions unless you have authority to make these decisions on their behalf.

1. Opt out of commercial e-mail and direct mail by sending a letter or through their website:
   By Internet: $1.00                     www.dmaconsumers.org
   By Mail            Free Mail Preference Service     PO Box 643   Carmel, NY 10512
    (Ask them to remove your name from their telemarketing lists)
2. Put their name on the “No Call” list.  You can register online, nationally, at www.donotcall.gov or call toll-free 1-888-382-1222. Most states also have their own state list as well.
3. Research an investment broker before you decide to do business with them.  http://www.finra.org/Investors/ToolsCalculators/BrokerCheck should be your first resource to learn about the professional background, registration/license status and disciplinary history of the firm and the brokers with whom you are planning to do business. 
4. Stop credit card offers and blank checks from coming to their home by calling the “Opt Out Line” at 1-888-567-8688, or at www.optoutprescreen.com.  You will need to give them their Social Security number
5. Call the Better Business Bureau or go to their website to receive a reliability report on local businesses or charities
6. Request a free copy of your credit report each year to inspect for accurate information and unusual activity, at www.annualcreditreport.com. 
7. If your family member is vulnerable to credit cards, lines of credit, or other credit related risks, consider freezing their credit with all three credit reporting agencies.
   Experian          1-888-397-3742
   Equifax             1-800-685-1111
   Trans Union   1-800-916-8800
8. Request a copy of their Social Security Earnings and Benefit Report to verify accurate reporting and wages.  1-800-772-1214
9. Call Adult Protection if you suspect abuse or exploitation
10. Use a Professional Fiduciary or Daily Money Manager to help your loved one manage their day to day financial affairs.
    www.aadmm.com or www.guardianship.org
11. Keep the lines of communication open with your loved one so they feel comfortable discussing what is happening in their life and will come to you for advice before making important decisions.
12. Encourage an active lifestyle and involvement in the community.  Issolation in the home leaves older adults vulnerable.  
13. Promote a support team mentality.  Bring in other professionals to help your loved one make decisons such as a trusted advisor, attorney, CPA, social worker, or clergy.
14. For older adults who are especially vulnerable to scams, charities, and other mail solicitations, consider having the mail transfered to your address or open a po box so you can go through and shred the “junk” mail before it gets to them.
15. For individuals who are recieving telemarketing calls, if the no call list isn’t working, consider changing their phone number to an unlisted  number.

Ultimately the best thing you can do for your loved one is to be an active participant in their daily life.  If you are an out of state child and can not physically be there to see what is going on, bring in their other friends or neighbors or consider hiring a professional in their area to check in on them and to be involved.

After spending some time thinking about my core values for BPS and why I do what I do, I decided on this.

Our core value is to glorify God by creating a profitable daily money management company that will meet the needs of others and allow us to give back to our community, our employees and those we serve. 

This core value is reflective of our corporate responsibility policy, which you can find on our website.  Through this policy I have committed to donate 1% of our gross revenue to worthwhile charities and causes.

I challenge you to not only think about what your core values are but to implement a plan for execution and see what good comes from determining and living out your purpose.

1. How many years have they been in business or how long have they been providing this service?  Ultimately as with all things in life, you can’t buy experience or wisdom.  This is especially true in this line of work. 

2. Are they properly insured? Do they have fiduciary errors and omissions insurance? If so, what are the coverage limits?  This insurance is a very important protection that you want to have as a potential client.  This usually covers errors, mistakes that are made or the failure to perform work as promised in your agreement. It’s also important that their policy is specifically underwritten for fiduciary and/or daily money management services or the policy may not provide the coverage that is needed.

3. Do they have employees or are they a solo practitioner?  If they are in business by themselves, you may want to ask how they handle vacations and holidays or if there is a back up plan in place for unforeseen health issues that may arise?  

4. How much longer do they anticipate working in this line of business? What is their exit strategy in the event something were to happen to them?  Who would manage your affairs? This maybe a consideration for you if you are much younger than the fiduciary or daily money manager you are interviewing.

5.  If they have employees, do they have a third party dishonesty bond in the event one of their employees steals from you?  If so, what are the coverage limits?   Do they have general liability insurance?  These are all reasonable protections for both the client and the company or person providing the service.

6.  Do they have the proper certifications for their profession?  If they are providing fiduciary services, are they a National Certified Guardian? If they are providing daily money management services, are they a certified Professional Daily Money Manager?  This is important as it demonstrates that they have passed an exam to cover certain topic areas.  They are also required to have a certain number of continuing education hours each year which ensures that they are keeping up on the latest trends and information in their field.

7.  Are they active members of their respective national associations?   For the fiduciary profession, we have the National Guardianship Association and for daily money management we have the American Association of Daily Money Managers. Both of these associations have codes of ethics and standards of practice that their members are to adhere to.

8.  If they have employees, do they do background checks or credit checks on new hires to ensure they are hiring the right people? 

9. Do they work out of their home or have an office?  In either case, it’s important to know what security measures are taken to protect your information, their computers and files.  How do they handle visitors, do they have a security system or alarm, do they used locked cabinets, is their home or office properly insured in the event of theft or a natural disaster?  

10.  How do they bill for their services?   Hourly, a percentage or a flat monthly fee?  If they bill hourly, what increments do they bill in?   Do they charge for travel time, mileage, out of pocket expenses, or staff conferences? It’s important to have an idea of their billing practices so that you know ahead of time what to expect.

Whether you are the client or a trusted professional who has a client who needs these services, it’s important to do your due diligence.  Although most professionals in this industry are competent, honest and have high ethical standards not all companies are created equal. Each has their particular background, experience, and way of doing business.  Therefore, be sure that the company you decide to use is going to be a good match for your particular situation.

If you have further questions or comments, feel free to contact me at Courtney@benefitpayeeservices.com.