For many adults, the prospect of disability or dementia raises an increasingly troubling question the more they age: who will manage their money and ensure it is used according to their wishes if they can no longer make sound decisions themselves?
To address this challenge, Shanghai has launched a pilot program that combines advanced guardianship with eldercare service trusts, creating a framework to protect seniors' assets while ensuring continued access to funds for care and daily living needs.
The pilot program changes the traditional arrangement in which guardianship rights and property rights are tightly linked, thus reducing the risks of asset misappropriation and conflicts of interest, said Zhu Junsheng, former research director at the Research Center for China Insurance and Pension Finance at Tsinghua University PBC School of Finance.
The program provides a more reliable eldercare protection solution for groups such as seniors living alone, families who have lost their only child, and families in which elderly parents care for disabled adult children, Zhu said.
As cognitive functions and physical health change, seniors may be unable to use their own bank deposits or real estate to pay for care expenses. Bank cards and certificates of deposit are also often difficult for family members to manage on their behalf. At the same time, unclear authority over assets can make it easier for guardians to misappropriate property.
