Things to know about managing a loved one’s finances
As you begin planning to take over medical or life decisions for your loved one, have you also considered what to do with their finances? We should be preparing our strategies now so we are ready when it happens.
When is it time to help?
Have you been considering taking over as a caregiver for a loved one, but you’re not sure if they are ready? There are a few simple things you can do to determine if it’s time. When you visit, check for unopened mail or undeposited checks lying around. These both become very common. This could be a sign that they are no longer able to go to the bank or may not understand why they should. Are everyday activities becoming difficult for them? If they start mentioning that they don’t have any money or are asking for money, this might be a good time to start these conversations. It may be a daunting task at first, but it’s important.
How to get the conversation started.
No matter when these discussions happen, they’re going to be difficult. But avoiding them altogether can lead to major problems down the road for you and your loved one. Start by coming up with a strategy — don’t go into this conversation without a plan. You don’t want to upset your loved one or make them uncomfortable. For many of us, discussing money is a very private issue. Reassure your loved one that this isn’t about taking over their finances, it’s to help set them up for future success. Think about who you want to be included in this conversation. Other family members? Any friends? It might be beneficial to have an outside perspective to help ease any tension or give any pieces of professional advice. If you can get help from a financial adviser or an attorney who can lead you in the right direction, that is a great start.
Where to begin?
After you have these conversations, it is now time to take a closer look at your aging loved one’s financial situation. This includes annual income, credit card debt and how much they receive in Social Security. Make sure you have an understanding of their monthly expenses, how much money is coming in and how much is going out. How are they paying their bills? Are they automatic? Being paid online? Or are they using paper checks? They might have a life insurance policy that you don’t know about, and you don’t want them to lose those benefits because it stops being funded. Gathering all of these documents and putting them somewhere secure is key.