Protecting Your Loved Ones: The Importance of Naming a Trusted Contact

As we age, managing our finances can become increasingly complex, and unfortunately, this can make us more vulnerable to scams and financial exploitation. At Kimbrough Law, we are always looking for ways to help our clients and their families stay safe and empowered. One proactive step that is gaining attention in the financial and legal communities is the use of a “trusted contact.” What exactly is a trusted contact, and why should you consider adding one to your financial accounts?

What Is a Trusted Contact?

A trusted contact is a person you authorize your financial institution or advisor to reach out to if they notice unusual activity or have concerns about your financial decisions. This person does not have access to your accounts or the ability to make transactions. Instead, they serve as a point of contact if your bank or advisor suspects you may be the victim of fraud, scams, or cognitive decline that could impact your financial well-being.

The concept is simple but powerful: if something seems off—such as large, unexpected withdrawals or requests that are out of character—your trusted contact can be notified. This allows someone you trust to step in, ask questions, and help protect you from potential harm.

Why Does a Trusted Contact Matter?

During a recent team discussion, we heard a story that highlights the importance of naming a trusted contact. A woman experiencing cognitive decline was repeatedly withdrawing large sums of money and sending them via Bitcoin after being targeted by scammers. The bank teller, concerned for her well-being, eventually contacted her daughter—despite privacy rules that technically prohibited this action. While the teller’s intervention helped, it also put their job at risk due to privacy regulations.

This is where the trusted contact comes in. By formally naming someone as your trusted contact, you give your financial institution permission to reach out if they have concerns, without violating privacy laws. It’s a safeguard that can make all the difference, especially for older adults or anyone at risk of cognitive impairment.

How Is a Trusted Contact Different from a Power of Attorney?

It’s important to note that a trusted contact is not the same as a power of attorney. A power of attorney gives someone legal authority to manage your finances, while a trusted contact is simply someone your bank or financial advisor can notify if they’re worried about your financial safety. The trusted contact cannot make decisions or access your money—they are there to help protect you, not to control your finances.

How Do You Set Up a Trusted Contact?

Setting up a trusted contact is usually straightforward. Most major financial institutions, such as banks and investment firms, offer a simple form—often available online—that allows you to name your trusted contact. You can typically do this at any time, and you can change your trusted contact as your circumstances evolve.

If you’re unsure where to start, contact your bank or financial advisor and ask about adding a trusted contact to your account. Each institution may have its own process, but the goal is the same: to provide an extra layer of protection for your financial well-being.

A Proactive Step for Peace of Mind

At Kimbrough Law, we encourage our clients—especially those who may be at risk of cognitive decline or who have experienced scams in the past—to consider naming a trusted contact. It’s a simple, proactive step that can help prevent financial loss and provide peace of mind for you and your loved ones. If you have questions about trusted contacts or want to discuss how this fits into your estate plan, please reach out to our team. We’re here to help you protect what matters most.