Manage your elderly parents’ money without going crazy
If for some reason today you had to take charge of your parents’ finances. Would you know what to do? Imagine that your 65-year-old mother falls or suffers a stroke and cannot talk anymore. If you had to take charge of your finances, would you know what to do? Caring for the fragile health of parents is very stressful in itself. Also, having to manage finances at the same time can be overwhelming, especially if you have trouble finding the necessary documents. Get 2020 medicare supplements at https://www.medisupps.com/medicare-supplement-plans-2020/
Start from now
Ideally, of course, prepare long-term plans before your parents need help. Otherwise, your parents may no longer be able to tell you how they would like their finances to be handled or to prepare the necessary documents to fulfill their wishes.
Talk to them
It is necessary to talk about it, although the fact of analyzing the finances of your parents may be uncomfortable “since they might think that talking about the subject is somewhat intrusive.” One way to start is to talk about your situation. “You can start by telling them you and your spouse if you have, that they recently talked about what would happen to the family if something happened to you, and ask them if they have thought of something similar.” If your parents are receptive, you could start by talking about how they would like their finances to be managed if they need help in the future, and whom they would designate to make financial decisions for them.
Collect important documents
You need to have a durable power of attorney or revocable trust to take care of your parents’ finances while they are alive. Both should name who will take charge, in case one of the spouses can no longer manage their finances, and also, call the children to make decisions if both parents are disabled. These documents must comply with the laws of the state in which your parents live. So if they do not have a lawyer now, they should find one that specializes exclusively in probate planning and older adult law.
To avoid abuse by a child and to make parents feel more comfortable, any of the documents can incorporate supervision by adding a second person with whom the first would have to act continuously.
The power of the child responsible for changing the will of the parents or the designations of beneficiaries could also be limited.