Williams said there are telltale signs of clients experiencing diminished mental capacity that advisors should be aware of, such as when clients forget information or they have problems keeping up with financial details.
“Advisors now are reaching out to the trusted contacts of their clients when they see the warning signs,” she said. “It also is important for advisors to be aware of how to educate clients’ families on what to look for. The family members will see first if the person has trouble with basic math or has mail piled up.
“We, as advisors, have a fiduciary duty to do the right thing in these situations,” Williams said. “This is a global challenge, and it is an emotional, as well as financial, problem for the client. Education of the client is the first step because fraud can have a devastating impact on the client’s financial plan.”