5 Tips For Helping Manage an Elderly Loved One’s Financials
Sadly, when loved ones get older, they may be more prone to having a decline not only in physical health, but in their mental health, as well. This may effect their ability to manage day-to-day responsibilities, like their finances, which may leave them vulnerable to scams or identity theft. Here are five tips on how you can help.
Have a conversation
It’s important to sit down with your elderly loved one and have an open line of communication. Some parents or grandparents may be resistant at first, because they may feel they’re losing control of what’s theirs. Help them understand your reasoning for doing this, and that you have their best interests at heart to look out for and protect them.
Determine a title
Power of Attorney, Guardian of Property and Living Trust Trustee are some of the titles that may be needed to be able to make financial decisions once your loved one agrees to your help and decides how involved they may want you to be. Research each title, so you know the extent of control each one offers. Then, sit down with an attorney to take the legal steps needed.
Understand your responsibilities
Once you assume your new role, it is crucial to understand you are legally bound to act in the best interest of your loved one, and you can be removed, sued or required to repay any money you may have used for your own benefit.
Help them avoid scams
Many scammers will incite a person’s emotions in order to obtain what they want. Research and walk through several different possible scenarios a scammer may use with your loved one and discuss how to avoid being taken advantage of if.
It’s important to remember whose money you’re managing. You’re only helping, but it’s not yours to control. Assure your loved one that they can dissolve the agreement if they ever choose to do so. The most important thing is to not abuse the authority they’ve given you, because it can damage your relationship with those you’re trying to protect.