Did you know that seniors lose $36 billion per year to elder financial abuse?1
One of the toughest conversations we face in life is talking with our parents about assisting with their finances. Many aging parents pride themselves on being independent. While this type of conversation may be difficult to approach, hopefully all parties will feel better knowing that there is a plan in place. Having a plan will help protect both you and your parent’s financial stability. Use these tips to help set up a plan and ease the transition.
Make it legal.
While it can be a difficult task when there are multiple children, it’s important to figure out who will be appointed power of attorney. This will ensure you or another member of the family have legal ability to help manage your parent’s finances.
If you do have siblings sit down together and discuss how each of you can help when the time comes. Who will be responsible for what. Whether its helping manage the finances, coming over to mow the yard or picking up the groceries, each task plays an import role.
Consider being added to your parent’s accounts. This will help you be able to notice any red flags in spending habits and make it possible for you to help manage their accounts. You could also set up automatic payments to help ensure your parent never misses a due date.
Visit as often as you can.
With distance visiting can be difficult. Even having a standing phone call with your loved one can help make the distance seem smaller and keep you both on track. Perhaps you have other family members that are local. Encourage them to visit too.
It’s still their money.
Keep an eye out for red flags but remember, as long as they are competent they have the right to chose how to spend their money. Your goal is to be there for support and to help them retain their independence as long as possible.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.