Memory and Money – When It’s Time to Manage the Finances
As caregivers, we don’t want to think about having to do one more thing. We run from the thought of taking the keys away from a loved one, until something happens. We don’t make the home safe, until something happens. And we don’t discuss finances until something happens. Don’t make the mistake that most of the 60+ million caregivers are making. Get a handle on your loved one's finances now.
There was a time when family caregivers did not have to cope with having the financial conversation with a loved one, but those days are long gone. Advancements in modern medicine are enabling people to live well into their 80s, and even into their 90s and beyond. Depending upon the elder’s quality of life, this can be a wonderful advancement for families. But not everyone ages with grace; time is not always kind, and many elderly people are living with dementia or Alzheimer’s.
As is true for all aspects of caregiving, the best time to act is before something happens. The Care Company is asked the financial question all the time. If you follow the steps below, taking over a loved one’s finances will be less stressful and if you are fortunate, it just might be a relief.
- The best time to discuss finances is when your loved one is able – in their 60’s or upon retirement.
- If you are going to be responsible for an elderly loved one’s finances, you must look at their finances.
- We no longer live in a world where you can continue to be polite about money. You must know what assets are available and what your loved ones wishes are. Without this conversation, you cannot do anything because you won’t know anything.
- Ideally you should have a signed Power of Attorney for Durable Assets in place in order to seamlessly take over the finances. You can make this arrangement anytime. Keep the signed and notarized Power of Attorney in a file with the Advanced Medical Directive. When something happens, you will be able to step in and take over the finances.
- Don’t wait for a crisis to occur. When an elderly loved one is hospitalized, you don’t have time to worry about finances and you don’t have time to figure out what money is available.
- Look for signs of disorganization. If bills aren’t being paid or checks aren’t being deposited, this is a sign that something is wrong. Do not ignore these signs. Take action.
- Look for signs of confusion and overwhelm regarding bill paying or finances with your loved one.
- Make arrangements for monthly checks to go on auto-deposit, i.e. Social Security checks, pension checks etc.
- Simplify and consolidate accounts where possible.
- Put one family member in charge of handling finances. The person who is designated as the Power of Attorney will handle this task. If siblings are involved, the Power of Attorney should send a monthly statement and accounting to other siblings to avoid any future problems. Keep copious records and keep receipts for everything. It’s also a good idea to make a copy of the monthly expenses and send this report to the family attorney or accountant.
- Seek help. Consult with a trusted family accountant or financial planner to uncover ways to save money and make prudent investments.
- A great website for information and insight is: http://www.360financialliteracy.org
