Assisting Elderly Relatives With Finances

Knowing when your aging parents or other relatives will need help with their finances can be tough. It may not be clear to you, and they may not recognize they need help either. If you have a gut feeling you may need to step in or have seen some warning signs, here are some helpful steps to consider. 

1. Identify signs that your parents need help. Check for warning signs that your parents are unable to fully manage their finances first. This may be either physically or mentally needing help. For example, they may have difficulty reading bills if their eyesight is poor or be unable to write a check due to painful arthritis. Their memory and understanding may be failing, causing difficulty keeping track of bills or making it easier for scammers to take advantage of them. 

By recognizing where their abilities fall short, it will make it easier for you to assist them in the most needed areas and help your parents understand that you are doing this to improve their life. Here are some easy ways to help them first:

• Create a budget together.
• Automate their bill payments. 
• Explore assistance programs.

2. Clearly communicate with your parents. Set time aside for an open discussion with your parents – even if they are still capable of handling their finances. Planning ahead will make the future smoother if the time comes that they are unable to manage their own finances. If you have siblings, invite them to join the discussion as well. This can help ease the task of managing your parents’ finances. Whether or not your parents need immediate assistance, make sure your conversation covers the following:

• Know where all important financial and legal documents are.
• Create a list of all accounts, assets and regular bill payments.  
• Discuss setting up power of attorney for their accounts. 

3. Talk with financial and legal professionals. It can be difficult to manage your own finances, let alone someone else’s. Ask your parents if they currently work with a financial planner or accountant. If they do, set up a meeting so you can be included in what’s going on. If not, set up a meeting with one to review their investments, help you create a plan and assist your parents in organizing their finances. 

Meeting with an attorney will make sure that everything is set up for a seamless transition whenever your parents need you to fully take over their financial management. Ensuring that power of attorney is properly set in place and there is a plan for assets after they’ve passed may be difficult but will give you and your parents confidence their financial wishes will be carried out. 

Dominion Energy Credit Union is here to help! Learn more about financial red flags from older relatives here.