As your parent grows older they will be less apt of handling their finances and sometimes they won’t ask for help even if they need it. Money is a sensitive subject in any situation, especially when taking over someone else finances is the topic. You need to have a good approach to the subject so that they become comfortable. In this article, we have listed steps to help you manage your parent’s finances…
Talk About It
It can be a while before your parents want your assistance, but start talking today. Consider speaking with your parents about who will manage their affairs in the event of a crisis. Parents should offer advance written approval to a selected family member so that that person may discuss a parent’s personal affairs with relevant experts such as doctors, financial representatives, and Medicare authorities, according to the National Institute on Aging. Privacy regulations may prohibit critical interactions if they are not planned ahead of time.
Starting a conversation today can help you better understand their financial situation and determine what amount of participation you should have in the future.
Gradual Changes
Instead of storming in to assume control of your parents’ money, gradually expand your help if and when it is required. If you’ve taken on the job of writing checks, for example, begin by doing so jointly. This type of delicate, progressive approach offers kids (and you) time to adjust to the new circumstances.
Financial And Legal Documents
Make a list of your parent’s phone numbers, account numbers, and where they keep important papers such as birth certificates, insurance policies, deeds, and wills. Check to make sure everything is still valid and current, and that all accounts are in good standing. Make sure any sensitive information is maintained securely, whether you’re accumulating this information or noting where your parents keep it.
Power Of Attorney
A power of attorney is a document signed by a competent adult that authorizes another person to act on their behalf. Powers of attorney can be temporary, restricted to specific situations, or more comprehensive, and they can cover financial, medical, or general choices. They can also be structured to be temporary, limited to specific circumstances, or more comprehensive. When you and your parent sign a power of attorney, you get the legal ability to make vital choices when your parent is unable to. For assistance in creating a power of attorney that meets your interests, contact an elder law attorney.
