If someone is declared legally incompetent due to dementia, does this?
If someone is legally incompetent then they can make no determination on how to spend their money. Therefore, fraud that is directed at the person (by an outsider/business) will be unsuccessful. Im working with a client right now who has been bilked of $28,000. The family will get all of that back. Fortunately, it all went to legitimate charities, and not individuals who would have potentially spent it and not have it to return. With regard to family members, or others responsible for handling the incompetent persons money, they can misuse the funds, or use them questionably, and sometimes get away with it. Here in FL the laws governing guardianship, for example, allow ridiculous charges to the ward. Such things as charging $75/hr to open junk mail, or $500 to plan a birthday party have been levied against a wards account. So, its a complex situation.