Your mother and father recently reached the age of retirement, and you feel they may need help properly managing their finances. You want to assist them in maintaining their independence, but you also recognize signs that point to potential mental incapacitation.
Kiplinger offers financial management tips aimed at older adults. See how you can proactively help your parents manage their financial health.
When the time is right, ask your parents about their open accounts. Closing unnecessary accounts and accounts your parents hardly use makes it easier for you all to track expenses. Keeping things simple also helps with fraud detection. Automating bill payments better ensures your parents do not incur avoidable late fees or uninterrupted services.
Learn how your parents manage their money
If the time ever comes when you have to take over your parents’ finances for them, knowing how they manage their money and assets helps to keep things on track. Such information also helps you to detect potential fraud, which is common for older individuals. If you do not feel up to this task, look into hiring a trusted money manager.
Ask about a durable power of attorney
Learning how your parents handle their money is a good start, but if the time ever comes when mental or physical incapacitation keeps your parents from managing their finances, the right legal documents make it easier for you to access their accounts and take care of their financial obligations. A power of attorney is a legal estate planning document that names an individual to make decisions for another person.
Everyone needs help with managing their finances, no matter their age. Now you have a better idea of what you can do to offer your aging loved ones the financial help they deserve.