My mother had a bad car accident in Dec. and my power of attorney was activated during an extended period when she was not lucid. Her checkbook and wallet were stolen during her illness and I managed to shut down all her accounts and prevent her losing any money. She is now mostly back to her old self but everyone (including her lawyer) tells me to keep the power of attorney active and take a more active hand in managing her financial affairs.I have been giving her cash and writing checks for her as needed. I am asking myself whether to set up a credit card and/or checking account for her. I would welcome others' experience.
That being said, it does not protect 100% against identity theft in general. For example, placing a credit freeze would not stop someone from stealing her bank account information (or her checkbook itself!) and commiting fraud that way. However, it is probably the single most effective, easiest, and cheapest (in most states, it is free) way to protect against the potentially most damaging form of ID theft. So, yes, your mother would be less vulnerable to ID theft by placing this freeze.
Also, since the January theft, have you checked her credit report? If not, here is my suggestion: under Federal law, you are entitled to one free check from each of the three credit bureaus each year. However, there is nothing that says you have to use them all up at once. I would get a copy from, say, Experian now, then in 3-4 months get one from TransUnion, and shortly before the end of the year, get one from Equifax. That, combined with placing a credit freeze, means you will never, ever, ever have to worry about someone having taken out a new credit card or some other kind of loan in your mother's name.
If you think your mom would like to have a checkbook again (a completely understandable desire!), my suggestion would be to figure out what her monthly spending is, and then transfer that amount into the account each month. That way, if someone were to steal her checkbook again -- or if an unscrupulous individual managed to con her out of money -- your loss would be limited to whatever money is in the account at that time, and possibly any returned check fees (I don't know how banks treat that). While still a pain, it significantly limits your potential loss.
Hope that helps!
1. I would not open a credit card account for your mother. In fact, I would go the opposite way and put a security freeze on her credit file. It is by far the easiest way to protect your mother from fraud and identity theft. If you're not familiar, a security freeze means that no new lines of credit can be opened in your mother's name. When you place the freeze, the credit bureaus will give you a PIN that you can use to temporarily "thaw" the credit file (say for a period of 2 weeks) if for whatever reason in the future you decide to get a new line of credit.
2. In our experience, it often works out better if you can help your mom keep as much control and decision-making authority as is practical -- with you providing a sharp eye and stepping in when needed. I think the suggestion that debmcd1256 gave above about sitting down on a regular basis and "helping" is spot on.
3. It probably is a good idea to set up a separate checking account for your mother, and you might want to consider making it a joint account. I would also suggest doing it at a bank that you already have an account with, if possible, just for ease and convenience. I think you will find that having a separate account makes it much easier for you to track the spending and transactions so that it won't be all mixed in with your own personal finances.
4. As I'm sure you've probably discovered, this can take a LOT of work and can become quite stressful for families. If you find it just becoming too much, I would suggest you visit the American Association of Daily Money Managers website (www.aadmm.com) and speak with a daily money manager in your area. Many people do not realize that there are professional services available to help with just this sort of thing. And, of course, I'm always happy to chat about it if you wanted to send me a private message.
Good luck -- it sounds like you're doing a great job!