Financial capacity assessment for older adults using the Peter Lichtenberg Financial Decision Screening Scales

1. LICHTENBERG FINANCIAL DECISION
SCREENING SCALE
DECEMBER 11, 2014

2. FINANCIAL EXPLOITATION OF
OLDER ADULTS
Older adults are vulnerable to the potential
loss of both:
• Financial skills and financial judgment
• Ability to detect and therefore prevent
financial exploitation.
Lori Stiegel, J. D.
http://generations.metapress.com/content/7523571065012268/

3. FINANCIAL CAPACITY ASSESSMENT
 Financial exploitation and financial
capacity issues often overlap
 Professionals lack a consistent, easy
to use tool to help evaluate a
person’s ability to engage in various
financial transactions

4. FINANCIAL CAPACITY ASSESSMENT
 Attorneys
 Financial Planners
 Bankers
 Investment Brokers
 Insurance Agents
 Accountants
 Adult Protective Services Workers
 Police/Law Enforcement
 Case Managers

5. KEY COMPONENTS OF THE FINANCIAL
DECISIONAL ABILITIES MODEL

6. FINANCIAL DECISIONMAKING
SCALES
• Lichtenberg Financial Decision
Screening Scale (LFDSS)
• Lichtenberg Financial Decision
Making Rating Scale (LFDRS)

7. Lichtenburg Financial Decision
Screening Scale (LFDSS)
 The LFDSS is a 10-item screening scale designed to
screen an older adult’s financial decisional abilities.
 Elements of the LFDSS are based on the decisional
abilities involving the communication of:
• Choice
• Rationale
• Understanding
• Appreciation

8. Lichtenburg Financial Decision
Screening Scale (LFDSS)
• Administered in an interview format
• Multiple choice
• Focuses on the potential for financial
exploitation and/or undue influence
• Professional does the rating
• Overall judgment score based in part on
“don’t know” or inaccurate responses.

9. Lichtenburg Financial Decision
Screening Scale (LFDSS)
• The vast majority of financial
transactions have no financial
exploitation and/or undue influence
present but screening is still useful
• Use of the LFDSS permits
documentation of the client’s
appreciation of the import of the estate
planning work they are completing
• Documents the file in anticipation of
subsequent contests

10. Lichtenburg Financial Decision-Making
Rating Scale (LFDRS)
If the LFDSS raises concerns, LFDRS is an
in depth tool to further evaluate an
individual’s:
 Financial awareness
 Psychological vulnerability
 Ability to Appreciate the Current
Decision/Transaction
 Past financial choices, rationale and
appreciation
 Risk of financial exploitation and undue
influence

11. Lichtenburg Financial Decision
Screening Scale (LFDSS)
To date, 85 LFDSS have been
administered
• 40 from Attorneys
• 35 from APS Workers
• 5 from Financial Planners
-Peter Lichtenberg

12. Dr. Peter Lichtenberg
Peter A. Lichtenberg, Ph.D. is the Director of both the Institute
of Gerontology and the Merrill Palmer Skillman Institute and
the Founding Director of the Wayne State University Lifespan
Alliance. He has overseen the growth of community outreach
for older adults and for the professionals who work with them.
Dr. Lichtenberg is a national expert in financial capacity
assessment and financial exploitation of older adults. He has
published articles on psychological vulnerability and fraud and
on his new instrument the Lichtenberg Financial Decision
Making Rating Scale.
http://www.iog.wayne.edu/profile/peter.lichtenberg

13. HOWARD H. COLLENS
GALLOWAY AND COLLENS, PLLC
26075 WOODWARD AVENUE
SUITE 200
HUNTINGTON WOODS, MICHIGAN 48070
248.545.2500
GALLOWAYCOLLENS.COM
Twitter: @howardcollens