Why, When, and How to Help your Parents with Finances

Why Help is Important

It’s essential to help your aging parents with their finances to help ensure they can enjoy those “golden years”. A few key benefits are:

Protecting them from scams and abuse, as seniors are frequent targets of financial fraud

Preparing for the unexpected, like a sudden health crisis — ensuring their wishes are honoured

Getting involved early also helps address the realities of aging, such as memory problems and decreasing mobility, and can prevent future family conflicts

Ultimately, this support lessens the burden of increased costs and provides peace of mind for both you and your parents

Starting the Conversation

When you’re ready to talk to your parents, timing is critical. Choose a calm, private moment and plan to discuss the topic gradually. It’s also helpful to involve siblings and consider consulting with a trusted professional, like a financial advisor.

Many parents are proud and private regarding their finances; respecting their feelings and viewpoints will help make them more comfortable in sharing these responsibilities with family.

You can tell if your parents need help by looking for signs like:

Piles of unopened mail, especially bills

Falling victim to scams

Unusual or atypical spending

Frequent calls from creditors

Confusion regarding financial matters

Gaining Legal Authority and Getting Started

To be able to help, your parents must be mentally competent to sign legal documents like investment, insurance and banking forms, and a Power of Attorney (POA). A Financial POA allows you to manage their financial matters, while a Healthcare POA enables you to make medical decisions on their behalf.

Here are some tips to get started:

Consolidate accounts to simplify management

Automate payments to avoid late fees

Never co-mingle funds with your own accounts, to avoid estate conflicts and tax consequences

Set up fraud protection by registering on the National Do Not Call Registry and placing a security freeze on their credit reports

Create a comprehensive list of all financial accounts, policies, and debts

Store usernames and passwords securely

Locate important documents like their will(s) and POA(s)

With your parents’ permission, meet with their financial planner or lawyer to get familiar with their affairs

Look for government benefits and assistance programs

If needed, plan for future housing changes early — waits can be significant for retirement or nursing home living spaces

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