Carnegie Investment Counsel Blog

Seniors: Should You Add a Trusted Contact?

Posted by Carnegie Investment Counsel on Mar 21, 2023 2:00:00 PM

Seniors Trusted Contact

No one likes to think about falling victim to a scam or suffering a medical emergency, but the sobering truth is that these situations do occur. If this type of trouble arises, you may need someone to advocate for you or serve as your liaison. Having a trusted contact is extremely important when it pertains to the management and protection of your finances. 

Here’s how to begin the process of adding a trusted contact to your financial advisor account to prevent any disconnect.


Understanding the Role of a Trusted Contact

As financial institutions continue to utilize modern technology and operations, many banks and financial organizations have become more concerned about what to do if an account holder experiences an emergency that can affect their financial assets. To effectively combat these potential emergencies, financial institutions may allow account holders the opportunity to establish a trusted contact to protect their financial health in the event of an emergency. 

Consider a scenario where a large withdrawal is made from an account that the financial institution or bank flags as unusual. The institution reaches out to the account holder, but receives no response. If the account holder has a trusted contact, the institution can then notify that person about the unusual activity, possibly thwarting a fraudulent withdrawal. 


Why Add a Trusted Contact 

There are numerous benefits to adding a trusted contact to your financial advisor account and bank. The main benefit is that if there is an emergency in your life, your financial institution has a previously identified individual to contact regarding the protection of your finances. With an identified trusted contact, your bank will be able to act quickly, if necessary, to combat any suspicious activity. 

Before you finalize the decision to add a trusted contact to your financial accounts, it is important to ask your financial advisor the following questions:

  • What happens if my trusted contact is attempting to take advantage of my finances?
  • How much personal information is shared with my trusted contact in various situations?
  • What specific alerts are shared with the trusted contact when a financial institution cannot reach me?
  • How can a trusted contact be removed, if necessary?

Once you’ve discussed the answers to these questions and feel fully informed, you can move forward with naming a trusted contact.


Choosing the Right Trusted Contact 

While there are no specific rules regarding who you can name as a trusted contact to your financial accounts, consumers typically choose a close friend, spouse or grown child. Additionally, it may be wise to add more than one trusted contact to your account, as that provides your bank or financial institution with options if your first individual listed is not available. 

After you have identified the individual or individuals you would like to serve as your trusted contact, you then determine the amount of access you want to grant them to your personal finances. 

Without personal consent, trusted contacts are not able to access any specific financial information, rather they will only receive updates regarding suspicious charges or other unusual banking activity. The contact will also be able to tell the financial institution if you are incapacitated or unable to answer questions for any reason.


Questions on Adding a Trusted Contact to Your Financial Advisor Account?

Adding a trusted contact to your financial advisor account can be a valuable step in ensuring that your finances are well-managed, even in the event of an emergency or unexpected situation. Adding a trusted contact can bring peace of mind and provide an extra layer of security for your finances. 

For more information about how to begin this process, contact our team at Carnegie Investment today.


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Topics: Financial Planning, Investment Management, Retirement Planning

Carnegie Investment Counsel

Written by Carnegie Investment Counsel

Carnegie Investment Counsel is an Registered Investment Adviser (RIA) providing personalized financial guidance to help you preserve and grow your wealth, so you are freer to enjoy your life. As your fiduciary, we are obligated to place your investing success ahead of our returns.

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