How to Help Elderly Parents With Finances
Begin your money discussions with your parents when they retire., Automate your parents' regular transactions so as not to lose checks or forget to pay something., Use a financial service provider that will either send duplicate copies of statements...
Step-by-Step Guide
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Step 1: Begin your money discussions with your parents when they retire.
Discuss where their sources of income are coming from (e.g. pension checks, annuities and/or Social Security), and ask them to keep an up-to-date document with this information.
Find out what institutions are holding the money.
Ask them to sign power of attorney documents.
Make sure to have this discussion early enough, if you are unable to catch them at retirement age, that their memory capabilities are still intact.
Otherwise a large amount of time will probably be spent piecing together the parts of your parents' financial puzzle. -
Step 2: Automate your parents' regular transactions so as not to lose checks or forget to pay something.
Set up their Social Security and other income checks to be direct deposited into their bank.
Sign up elderly parents to have utility payments debited from their account.
Reconcile their lists against past tax forms to confirm that you are accounting for all of the income.
Review the bank statement every month to ensure that you understand and are tracking how much money goes into and comes out of the account. , As parents age and their mental capacities diminish, if you do not intercept their mail, important documents may be thrown away before you have opportunity to see them. , Meet with your parents' insurance provider, and with your parents' permission, discuss their policies and make sure that payment of those policies is being covered.
It is a shame for a policy that has been paid on for decades to lapse, and the children lose all death benefits, because the parents mismanaged the paperwork.
Look into Medicare and/or supplemental benefits that may have been offered by former employers and/or look for long-term care policies that may be buried in the paperwork.
Policies like these will help ease your and their financial burden in the event of having to put a parent in a nursing home.
With your parents' permission, seek copies of all policies for your records. , The National Council on Aging website at http://www.benefitscheckup.org can help you find out if your parents are eligible for discounts on their property taxes, health care or utility bills.
The Administration on Aging website at http://www.eldercare.gov can provide you information on social services available for the elderly, including health care information by county. , -
Step 3: Use a financial service provider that will either send duplicate copies of statements to you or allow you to view the online statements.
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Step 4: Don't forget to review your parents' insurance.
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Step 5: Research if your parents are eligible for state or federal benefits.
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Step 6: Speak with a professional about your parents' investment portfolio and make any necessary decisions to ensure that they will be well taken care of for the rest of their lives.
Detailed Guide
Discuss where their sources of income are coming from (e.g. pension checks, annuities and/or Social Security), and ask them to keep an up-to-date document with this information.
Find out what institutions are holding the money.
Ask them to sign power of attorney documents.
Make sure to have this discussion early enough, if you are unable to catch them at retirement age, that their memory capabilities are still intact.
Otherwise a large amount of time will probably be spent piecing together the parts of your parents' financial puzzle.
Set up their Social Security and other income checks to be direct deposited into their bank.
Sign up elderly parents to have utility payments debited from their account.
Reconcile their lists against past tax forms to confirm that you are accounting for all of the income.
Review the bank statement every month to ensure that you understand and are tracking how much money goes into and comes out of the account. , As parents age and their mental capacities diminish, if you do not intercept their mail, important documents may be thrown away before you have opportunity to see them. , Meet with your parents' insurance provider, and with your parents' permission, discuss their policies and make sure that payment of those policies is being covered.
It is a shame for a policy that has been paid on for decades to lapse, and the children lose all death benefits, because the parents mismanaged the paperwork.
Look into Medicare and/or supplemental benefits that may have been offered by former employers and/or look for long-term care policies that may be buried in the paperwork.
Policies like these will help ease your and their financial burden in the event of having to put a parent in a nursing home.
With your parents' permission, seek copies of all policies for your records. , The National Council on Aging website at http://www.benefitscheckup.org can help you find out if your parents are eligible for discounts on their property taxes, health care or utility bills.
The Administration on Aging website at http://www.eldercare.gov can provide you information on social services available for the elderly, including health care information by county. ,
About the Author
Judy White
Dedicated to helping readers learn new skills in DIY projects and beyond.
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