At Lifescape Elder Care Law & Estate Planning, we help families prepare for the realities of aging — legally, financially, and practically. One of the simplest and most effective steps you can take to protect yourself or an aging loved one from financial exploitation is naming a trusted contact on your financial accounts.
It’s a small step that can make a big difference.
What Is a Trusted Contact?
A trusted contact is someone you authorize your financial institution or advisor to reach out to if they suspect something unusual or concerning about your financial activity.
This person does not have access to your money and cannot make decisions or transactions.
Instead, their role is to act as a safety net — someone your bank or financial advisor can call if:
- There’s a sudden pattern of large or out-of-character withdrawals
- You appear confused about your accounts
- There’s concern about scams, fraud, or potential cognitive decline
It’s a way of giving financial professionals permission to help keep you safe, without violating privacy laws.
Why It Matters
Unfortunately, financial exploitation is one of the fastest-growing forms of elder abuse in America. Scammers are sophisticated — often posing as government agencies, charities, or even family members. And as people age or experience cognitive changes, they may become more vulnerable to pressure or manipulation.
We recently heard a story that illustrates the importance of this protection. A woman in the early stages of dementia began withdrawing large sums of cash and sending it through Bitcoin after being targeted by scammers. A concerned bank teller finally called her daughter — even though doing so technically violated privacy rules. Thankfully, that call stopped the fraud, but it also could have cost the teller their job.
If that woman had designated a trusted contact, the bank would have had the legal authority to reach out before the losses mounted — safely and appropriately.
That’s the power of a trusted contact: it builds in a layer of communication before disaster strikes.
Trusted Contact vs. Power of Attorney: What’s the Difference?
A power of attorney (POA) gives someone legal authority to make financial decisions and manage your assets. A trusted contact, by contrast, has no authority to act — only to be notified if there’s concern about your financial well-being.
Think of it this way:
- A POA helps someone act for you when you can’t.
- A trusted contact helps someone protect you by raising the alarm if something seems wrong.
Having both in place gives you a stronger safety net.
How to Set Up a Trusted Contact
Adding a trusted contact is simple. Most major banks, brokerage firms, and investment companies now offer the option. Typically, you’ll complete a short form—online or in person—listing your trusted contact’s name, phone number, and relationship to you.
If you’re unsure how to begin, ask your financial advisor or bank representative. Each institution’s process may differ, but the goal is always the same: to help safeguard your accounts and give you peace of mind.
You can change your trusted contact at any time, so it’s easy to update your choice as your life or relationships evolve.
A Simple Step Toward Peace of Mind
At Lifescape Elder Care Law & Estate Planning, we encourage every client—especially those who are aging, caregiving, or helping manage a loved one’s affairs—to name a trusted contact.
It’s one of those small but powerful steps that can protect your independence, preserve your resources, and give your family confidence that help is just a phone call away.
If you would like guidance on how to integrate trusted contacts into your broader legal and life care plan, we’re here to help.
Contact Lifescape Elder Care Law & Estate Planning today to schedule a consultation. Let’s make sure the systems around you are strong enough to protect what matters most.
Recent Comments