Financial capacity assessment can be confusing for older adults and their families, and finding a psychologist skilled in capacity evals is not always easy. Here is some helpful information about financial capacity, and where a psychological capacity assessment comes into the picture.
Understanding Financial Capacity
Financial capacity is a person’s ability to manage money and make financial decisions. This is a right that all adults have, but in some situations, questions about a person’s ability to manage their own money can arise.
There are two typical types of cases when this happens:
For older adults who are diagnosed with a neurodegenerative disorder, like dementia
When an adult becomes disabled in a way that impacts their brain and thinking, like after a traumatic brain injury or stroke
To be very clear, just because a person has a disability, dementia, or is of a certain age, does not mean they lack financial capacity. Financial capacity usually comes into question when a person:
Demonstrates difficulty making financial decisions
Shows very poor judgment about their own finances
Is financially manipulated by another person
Can’t keep up with managing their money
In addition to having a brain change that impacts overall judgment, these types of situations could raise questions about financial capacity. It’s very serious to consider limiting someone’s right to make their own decisions, so in cases that are not clear-cut, it is necessary to seek a financial capacity assessment with a clinical psychologist.
Financial Capacity Assessment With a Psychologist
A psychologist with expertise in the financial capacity assessment will do a few things as part of a comprehensive financial capacity evaluation:
A thorough interview with the adult in question
Testing to evaluate their
understanding of financial concepts
practical money skills (like writing a check or counting change)
Possibly also interviews with family members, partners, caregivers, or other people closely involved in the person’s life
A review of financial and medical records
The psychologist will often write a report with the results and recommendations. When there is a question about financial capacity, the psychologist’s aim is always to balance protection (recommending support and additional help when someone truly needs it) and autonomy (respecting and supporting the person’s right to make their own decisions). This is a tightrope walk in some situations, and hiring a psychologist with expertise in this area can lead to the best possible outcome for the vulnerable adult being evaluated.
The Results of a Financial Capacity Assessment
After a financial capacity assessment is complete, the results may be used in a few different ways:
To aid in appointing a financial representative (sometimes called an agent, Power of Attorney, or POA)
To make recommendations about what support a person might need to maintain as much financial autonomy as possible (e.g., help setting up autopay for monthly bills)
To appoint a conservator of a person’s estate (also called a limited conservatorship, in which the conservator only handles financial matters for the person)
To do nothing (e.g., when someone demonstrates financial capacity, and no change is needed)
To protect a vulnerable person from being exploited for their money or property
Receive A Capacity Assessment in Los Angeles, CA
Receiving a financial capacity assessment can help you better understand what is best for your family. Dr. Reger provides capacity assessments at several locations in Southern California. You can schedule an appointment by following these steps:
Contact (424) 262-1925 to schedule your appointment
Meet with a Los Angeles Psychologist for your financial capacity assessment
Balance protection and autonomy today
OTHER COUNSELING SERVICES OFFERED BY Dr. REGER in Los Angeles, ca
I know you may experience a number of mental health concerns. This is why I’m happy to offer multiple neuropsychological and psychological assessments. Other assessments include cognitive and dementia testing, pre-surgical assessments, and med-legal evaluations. In addition to evaluations, I also provide individual therapy, counseling for older adults, and mental health consultations and presentations.