Tips To Helping Your Aging Parents With Their Finances

Managing finances can get a bit challenging for aging parents, requiring you to step in and offer some assistance. It may be difficult for your aging parents to accept your help because they want to remain independent despite the signs that they need your help. Moreover, they might not feel comfortable having someone else involved in their finances. However, if you notice the warning signs that they need help, it is important that the issues are addressed by approaching the topic very gently and making sure that you involve them throughout the process of making financial decisions for ease.

Examples of warning signs including: failing to pay bills on time, unexplained spending, creditors are calling among others.

Here are some tips to help reduce any resistance as you take on managing your aging parents’ finances.

1. Work with them and respect their decisions.

If your family member is able to manage their own finances, be respectful to work with them instead of taking over. They are grateful for the help now and then but will be more comfortable to ask for help when they will require it.

In case you are managing their finances already, communicate with your parents on every move made just to keep them aware and generally in the loop for less confusion.

As a caregiver, always keep their finances and yours separate for proper budget and recollection of expenses made.

2. Locate important documents.

Documents such as Passport or Identification Cards including title deeds are among the critical records in case of emergency. Locating them will protect your loved one’s assets and safeguard their finance properties especially when it comes to insurance and investment plans.

Here are a few important documents to locate:

• Bank and brokerage statements

• Wills

• Insurance policies

• Pension records

• Home mortgage or reverse mortgage

• Car title

• Social Security payments

• Safe deposit boxes

3. Get access to financial accounts.

Let your parents share their important details by appointing you their Power of Attorney (POA). This is because banks and other financial institutions have strict rules on who can access the accounts. Legal paperwork especially in cases of dementia are necessary to write checks or withdraw money for daily use. Thus, will be more convenient in case of health incapacitation.

Note: Consult a financial planner or legal advisor before signing a joint access to any account. An attorney helps you handle legal documentation and authentication of their documents after major and minor purchases.

4. Keep family informed.

Keep the adult parent as involved as long as they can. In case they can no longer handle it by themselves, address the issue immediately before it becomes a problem. Involving your closest relatives such as your siblings will help everyone take responsibility and feel involved.

Holding meetings regularly will help monitor the use of finances and ensure that the assets are managed wisely.

5. Future Plans

Many elderly people have wills and testaments written down by a legal advisor or lawyer to ensure that the assets or property are managed properly. If your parent has not gotten one yet, you should have a conversation with them early enough in the case of a health crisis.

As you discuss managing your aging parents’ finances, this can also be a great time to consider having conversations about where they plan to live as they get older as well as discuss any long-term care plans in the event they require a higher level of care you are not in a position to provide.

Recommended for you:

• Signs your parents need your help managing finances

• How to Talk to Mom & Dad About Long-Term Care Options