Advice for Assuming Control of Aging Parents Finances

Convincing senior parents to turn over management
of their bank accounts can be more challenging
than taking away their car keys. After all, Mom and Dad
have been role models on the importance of saving
money and investing. Their repeated advice: Pay your
bills as soon as they arrive, but check them for accuracy.
Anything left over after you pay your living expenses
goes into savings accounts or conservative investments.

Bounced Checks, Spendthrift Behavior
But now, you may see some serious red
flags in your parents’ fiscal behavior. They don’t
seem to be living up to their own sage advice.
The “every penny counts” mother mentions bounced
checks and overdraft fees. Her electricity was shut off
because she forgot to pay the bill for two months. A
review of her checkbook shows that she mistakenly
paid the same insurance bill twice.

The historically frugal father has uncharacteristically
paid $2,500 to sweepstakes entries over the last year
and written six $100 checks to a TV evangelist – the
one recently arrested for fraud. It’s scary, parents might
make a devastating financial move and lose everything.

Start With a Compromise

If your parents are reluctant to cede control,
suggest starting with the “unofficial” role of financial
monitor. The first step is to set up online account
monitoring. Gradually, the adult child can move into the
more official role of money manager as a parent gets
comfortable with sharing control.
A more formal step is to enlist the help of an estate
planning attorney to draft a Durable Financial Power
of Attorney. This legal document allows a loved one
to handle a person’s finances when he or she no
longer can. It can be written to go into effect
immediately or upon a doctor’s certification that the
parent is incapacitated.

Options for Outside Help

Another solution for some families is to hire a
licensed and bonded private fiduciary to pay the bills.
There is also a growing body of professionals who
help seniors without any family available to help, or
whose loved ones are overwhelmed by the prospect
of dealing with a senior’s financial problems.
Most large cities have a Council On Aging. They
have bonded representatives who visit the elderly at
home and are able to assist in financial matters.
There are a variety of strategies in handling a senior
parent’s finances.
As always, we hope this article has helped you. If you have
a specific case or concern, please contact Stephen Lacey to
set up an appointment.
To contact Stephen Lacey call
(321) 984-2700.
Visit our website: www.mjlandl.com