Planning for retirement often involves saving money, investing in property and making arrangements to ensure that loved ones remain financially secure. However, one important risk is frequently overlooked: what happens when an ageing parent develops dementia and can no longer manage their finances or make important legal decisions?
This issue is receiving renewed attention following a recent episode of News24’s personal finance programme, Money: It’s Not Black or White, hosted by financial journalists Maya Fisher-French and Mapalo Makhu.
In the episode, titled When Dementia Strikes, Is Your Family’s Money Protected?, the presenters explore the legal difficulties, financial costs and emotional challenges families can face when a loved one loses mental capacity. They are joined by certified financial planner and fiduciary expert David Thomson, who explains why families should prepare before dementia or Alzheimer’s disease affects someone’s ability to manage their affairs.
Why dementia can create serious financial problems
Dementia affects memory, thinking, behaviour and the ability to carry out everyday activities. As the condition progresses, individuals may struggle to manage bank accounts, pay bills, understand financial agreements or recognize potential scams. For families, the situation can become complicated when an ageing parent needs assistance but has not made formal arrangements for someone to manage their finances.
A person experiencing cognitive decline may also become vulnerable to financial exploitation, including fraudulent investments, suspicious transactions and individuals attempting to take advantage of their circumstances. The problem is not simply about accessing money. Families must also understand who has the legal authority to make decisions on behalf of someone who can no longer do so independently.
Why a power of attorney may not protect your parents
One of the biggest misconceptions surrounding financial planning in South Africa is that signing a power of attorney guarantees that a family member can manage someone’s affairs indefinitely. However, South African law generally does not recognize an enduring power of attorney.
This means that if someone gives a relative authority to manage their finances and later loses the mental capacity to make legal decisions, that power of attorney becomes invalid. The relative cannot simply continue using the document to access accounts, manage investments or sign financial agreements on the person’s behalf.
This can create serious difficulties when families suddenly need to pay medical expenses, manage retirement investments or deal with property matters.
What legal options are available?
Families may need to explore formal legal arrangements when someone can no longer manage their financial affairs.
One option is applying to the High Court for the appointment of a curator bonis. This person is authorised to manage the financial affairs and property of someone who has been found unable to manage them independently.
However, the process can be expensive because it may involve legal representation, medical assessments and investigations. Another possible option is applying for the appointment of an administrator through the Master of the High Court under the Mental Health Care Act, where the legal requirements are met.
The administrator receives authority to manage the person’s property and financial affairs subject to the conditions imposed by the Master. The appropriate route depends on the individual’s circumstances and the applicable legal requirements. Families should obtain professional legal advice before choosing an option.
The financial cost of caring for an ageing parent
Dementia can also place considerable pressure on household finances. Families may face expenses involving medical treatment, specialised care, medication, transport and assistance with everyday activities. Some relatives may eventually need to reduce their working hours or leave employment to provide full-time care.
These costs can affect retirement savings and create financial pressure for children who are already supporting their own households. The programme highlights why families should discuss long-term care arrangements and financial responsibilities before a crisis develops.
Why early planning matters
Financial planning should involve more than deciding who inherits money when someone passes away. Families should have conversations about retirement investments, bank accounts, insurance, property ownership and the practical arrangements needed if someone becomes mentally incapacitated.
It is also important to document financial information, keep relevant legal records accessible and discuss future care preferences while the individual can still participate in decisions.
Most importantly, families should approach these conversations with sensitivity. Losing financial independence can be frightening, and protecting someone’s money should never mean unnecessarily removing their dignity or involvement.
The central message from Maya Fisher-French, Mapalo Makhu and their guest is that families should not wait until dementia becomes severe before seeking advice. Planning early can reduce legal complications, protect savings and help ensure that ageing parents receive appropriate care without unnecessary financial uncertainty.
Families encouraged to plan ahead
The discussion highlights the importance of preparing legal and financial arrangements while ageing relatives can still make informed decisions.
2 November 2026 – News24 releases new podcast episode
Maya Fisher-French and Mapalo Makhu discuss the financial and legal challenges families face when parents develop Alzheimer’s disease or dementia. Certified financial planner and fiduciary expert David Thomson joins the conversation.
Power of attorney concerns highlighted
The discussion draws attention to the limitations of ordinary powers of attorney in South Africa, particularly when a person loses the mental capacity to manage their affairs.
Ongoing – Families urged to understand legal options
Curatorship and administration under the Mental Health Care Act remain important legal mechanisms for managing the affairs of people who meet the relevant requirements.