As your parents age, they need additional assistance that could include driving, housework and medical care. Many elderly parents become forgetful and have trouble making financial decisions. While you may be reticent about stepping in and taking over your parents' finances, consultants at the Online Organizing website advise the adult children of aging parents to be realistic about their parents' abilities. Being aware will help you help your parents avoid major problems that could affect your own family's financial health.
Step 1
Talk to your parents as early as you can about their wishes and get them to complete documents while they are able. Once a parent has had a debilitating stroke or develops dementia, it can be difficult to get them to participate in their financial planning, and they may be more reluctant to allow you to help. Ideally, parents should put it in writing if they want you to handle their affairs. If you have siblings, parents should designate one child to care for the finances.
Step 2
Get a financial power of attorney. You can use an online form and get the signatures notarized. It may be most useful to contact a lawyer who specializes in elder law to draw up the papers and make sure everything is in order.
Step 3
Bring one or both of your parents to the bank with you to get the signatures notarized. While banks are legally required to honor a financial power of attorney, they are more reluctant to agree to the terms of a document when they do not know the parties involved. Banks must cover their own assets and are more likely to work with you when they have met you and know your parents.
Step 4
Have your parents add your name to all their accounts as a joint owner. You can be on their checking accounts, mortgage account, retirement investments and money market savings as an account holder with all the rights of the other person on the account. Add your name to the deed for the house and other personal property.
Step 5
Keep receipts and document any funds that you may have designated to care for your aging parents, especially if you have siblings and expect other beneficiaries. Children who take care of their parents' finances typically are awarded repayment from the estate prior to disbursements made according to the will.
Tips and Warnings
- Allow your parents to make as many decisions as they can as long as they are able. Discuss money matters and what your plans are to take care of their finances. You will have more cooperation from your parents if you respect their wishes and help them to be independent as long as they can.
- Do not get caught off-guard with unexpected medical bills or insurance problems. Make sure you are aware of all the coverage your parents have in force as well as what services are available through the community and through the government to take care of your parents' medical needs, which may begin to mount as they age.
Things You'll Need
- Power of attorney
- Notarized signatures
- Joint accounts
