When to Know It is Time to Take Over Your Parent’s Finances

Our parents are the people we look up to; they are the sacrificing individuals who have given us much love and guidance throughout our lives. However, it is inevitable that eventually the roles reverse between parents and children. As our parents become elderly they continually need more assistance. While most people think of the medical care their elderly parents may need, finances should also be a concern or focus.

There are a number of factors that may indicate it is time to take control of your parent’s finances. Unfortunately, the elderly are the biggest victims to financial fraud each year. Many seniors begin to lose cognitive abilities and find their financial habits changing. These changes have the potential to negatively impact their life. Here are some indicators that it is time to take the reins on your parent’s financial future.

Behaviors to Look for:

• Your parent starts to suffer with a form of dementia or Alzheimer’s disease.

• They are struggling to do math computations.

• Decreasing attention paid to financial statements.

• Increase in the amount of time to complete financial tasks.

• Mentally becoming risk adverse with their finances.

• Decreasing awareness of financial concepts.

Signs of Trouble:

• They begin complaining about not having enough money.

• You begin to see unopened bills at home.

• Collectors begin calling your parent’s home.

• Your parents are making large purchases beyond their means.

• They’ve taken up a new excessive interest in gambling.

• A caretaker who may try to exploit them financially.

Steps to Managing Your Parent’s Finances

1. If possible, discuss your growing concerns with your parents. Offer to help them manage their finances in a way that is agreeable to all.

2. Establish a financial power of attorney or living trusts which will give you access to handle their finances.

3. Get the whole picture-gather all financial statements and account information.

4. Set up a budget. Get an idea of their monthly income versus expenses. Find ways to save money or cut out unnecessary spending.

5. See if there’s a way to increase their income from investments. Analyze whether or not they can benefit from different investment products.

6. Keep documentation of all financial transactions you oversee.

7. Speak with a financial planning team. Your parent’s finances are safest in the hands of a well trusted financial advising team. These advisors can see without any bias where your parent’s money will be safest, yet yield the greatest return for them.

Taking over control of your parent’s financial standing is a big commitment. It is one that will likely last several years. It is an ongoing process of staying connected and advocating your parent’s financial health. Email Carolina Money Minders today to discuss how we can make this transition as smooth as possible for your family.