Although protecting your parents’ physical and emotional health is important, as they get older it’s also vital to safeguard their finances. The elderly can be particularly vulnerable to scams and financial abuse. Getting involved in managing your loved one’s finances can help prevent them being taken in by scams or manipulated by unscrupulous financial professionals.
Encourage Them to Create a Will
Having a will in place helps families avoid conflict and can make a challenging time less stressful and emotionally taxing. When someone dies without a will, their estate goes into probate, which can be a very lengthy and costly process. Without a will, your parents’ estate may also be vulnerable to challenges from outside parties. Laws and inheritance tax regulations vary by state, so if a parent’s estate goes into probate make sure to seek the counsel of a qualified attorney.
Create a Power of Attorney for Finances
Powers of Attorney are also an invaluable tool when it comes to estate planning and ensuring your parents’ assets are properly managed and protected. A Power of Attorney for Finances allows a parent to name someone to handle their finances should they become incapacitated and unable to make decisions for themselves. A Power of Attorney can be as broad or limited as the person wants it to be.
Some common tasks that a designated agent takes care of may include paying bills, managing investment accounts, retirement accounts, and social security payments, and buying or selling real estate. It’s also important to remind your parents to keep beneficiaries updated on their will, life insurance policies and retirement accounts like IRAs and 401(k)s. Keeping a close eye on these matters can help to ensure your parent isn’t coaxed into changing beneficiaries by a friend, family member, or anyone else who may bad intentions.
Build Personal Relationships with Financial Advisors and other Professionals
Getting to know your parents’ attorneys, accountants, and financial advisors can also help to keep their finances safe. Going to meetings with your parents can help professionals understand your family dynamics and ensure you’re all on the same page when it comes to protecting their interests. Building these relationships can also reduce stress when settling their estate and take some of the emotional weight off your shoulders.
Take Advantage of Safety Programs
The elderly are often victims of telephone, email, and mail scams. You can limit the amount of junk mail and phone calls they receive by adding their contact information to Do Not Call and Do Not Mail registries. In addition, consider signing them up for a credit monitoring service, which will alert you if someone steals their identity or tries to open any accounts or loans in their name.
Discuss and Review their Finances Regularly
It’s important to respect your parents’ independence and dignity when helping them manage their finances. Ask them what they want and how much they’d like you to be involved. If possible, get their approval before taking any action that involves their finances. Getting together monthly to discuss their income, expenses, budget, and investments can help all of you keep track of what’s going on. Regular analysis of their financial situation can also you quickly detect anything that looks fishy. Approaching the subject with compassion and reassuring your parents that you’re there to protect them can help them feel more comfortable and confident about sharing their financial information with you.
Protecting Your Parents’ Health and Finances
If your parent requires home health care, always make sure to choose a reputable organization that has strict vetting processes for their employees. All of these tips can help your parents stay healthy, happy, and financially secure for years to come.
If you are a loved one feel you may be in need of at home care, please contact us at Trusted Touch Healthcare for a free consultation.
