According to Wealth Management, most financial plans focus on two distinct points: when clients can fully manage their finances and, on the other hand, when a legally authorized person assumes control. Yet many clients experience a vulnerable period in between. During this "middle ground," confidence and comprehension can decline long before any official diagnosis. When a financial plan ignores that gap, the client's wealth may face unnecessary exposure. A trusted contact can help in several important ways, according to Wealth Management:
Prevent Elder Financial Abuse
Elder financial abuse costs investors billions annually. A trusted contact creates an early alert system if you observe suspicious withdrawals, unauthorized transfers or unusual trading activity. It allows advisors to confirm whether something is wrong while maintaining client confidentiality.
Support Clients Facing Health or Capacity Challenges
Illness, cognitive decline or unexpected accidents can disrupt a client's ability to manage finances. Without a trusted contact, an advisor may have no choice but to freeze accounts until proper legal documents arrive. A trusted contact can provide quick confirmation or context so you can move forward appropriately. They can also help during everyday disruptions such as lost phones, international travel or temporary relocations.
Protect Assets During Periods of Vulnerability
Market volatility, emotional stress and life transitions can heighten exposure to financial risk. A trusted contact strengthens the client's safety net and supports continuity during uncertain times. When selecting a trusted contact, clients should choose someone reliable, reachable and calm under pressure. Wealth Management adds that this person does not need to be the same individual who serves as power of attorney or executor. Many clients select a spouse, adult child, sibling, close friend or professional advisor such as an attorney or accountant. What matters most is trust and dependability.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
