CJE Mental Health Practice Test

When someone with Alzheimer’s begins having trouble handling money, the protective step usually chosen is a durable power of attorney for finances. This legal document lets a trusted person—an agent—step in to manage bills, banking, and investments on the person’s behalf, either right away or once incapacity is established. It’s designed to function even if capacity later deteriorates, so routine payments aren’t missed and assets aren’t at risk from mismanagement or exploitation.

This approach is preferable to other options because it preserves the person's autonomy while providing a trusted aide to handle finances, without the need for court supervision. A will, by contrast, deals with assets after death and doesn’t protect someone who is alive and unable to manage money. Hiring a financial advisor helps with day-to-day money management but doesn’t grant legal authority to act for the person. Guardianship is the more restrictive, court-supervised route that takes away decision-making control and is typically pursued only when no durable power of attorney exists or is appropriate.