Select Page

As a child, you were raised by your parents, who provided you with financial security and a certain amount of autonomy. Now that you’re an adult, you’re responsible for your aging parents’ well-being. You may also need to help them manage their finances and care for their physical conditions, such as arthritis and gout. This guide will help you understand how you can help your aging relatives manage their finances.

 

How to Know When to Step In

One of the most challenging moments in life is realizing that your aging parent is struggling with mental agility. You may feel this when you beat them at chess or when they forget their birthday. However, how do you manage these concerns?

You may feel that it’s not right to talk about your parents’ financial situation. You may think that you’re invading their privacy. However, speaking to them about their finances is essential now, as they may begin to show declining health. If you don’t talk to them about their finances soon, they may fall victim to identity theft or elder financial abuse.

 

Talking to Your Relatives

An elderly parent going through a loss of independence may need your help with their finances, which could feel very unsettling. The relationship change can also make one feel like they have lost their identity.

If you feel your parents won’t listen to you, you might want to reach out to a close family friend. It could be easier to stomach having this conversation with a peer than with a child.

 

Creating a Plan

Getting your parents to agree to financial help is a big step. Following these steps will help you organize their finances. First, you should keep track of your parents’ financial activities to ensure they are in compliance. You should have a comprehensive list of all their accounts, including their credit card, mortgage, and household utilities. You should have a complete list of their accounts, including their credit card, mortgage, and household utilities. Prepare a payment schedule for all of their bills and locate any legal documents.

 

Power of Attorney: Property and Finances

Although you may be able to help your parents with their finances unofficially, having a legal role can be very beneficial. A power of attorney is a legal document that gives a person other than your parent the authority to make financial decisions for your parent if they become incapacitated. The person with the power of attorney is also responsible for managing your parent’s finances. This type of power of attorney can limit the agent’s powers and should be the person your parents trust.

Before your parent becomes incapacitated, they should meet with an attorney to discuss their wishes regarding a power of attorney. This legal document should be prepared according to their conditions in case you have to use it at any point. An attorney reviewing the documents ensures they comply with your parent’s wishes.