Aging Parents with Money Matters
For most adult children, it’s hard to come to terms with the fact that their once strong and capable parents may at some point down become dependent on them to provide for their everyday necessities. If you don’t think you are ready to take on this challenge, it can cause a lot of stress, particularly if the task involves managing your parents’ finances. It’s important to begin some initial planning even if you’re not at that point yet. Start preparations so you’re ready to take control their financial matters later. Keep the following tips in mind.
Take initiative to speak with your parents now
If your parents are physically and mentally well now, talk with them about what they would like if you eventually need to manage their finances. An important step is to support your parents in preparing a document that specifies the location of their financial accounts or safety deposit boxes, as well as financial professionals. It could be uncomfortable for them to let you know what their financial status is, but you’ll accessibility to account number, contacts and names of financial institutes in the event of an emergency. If you don’t have a need for that now, be certain that information is saved in a safe place.
Be aware of their financial obligations
Knowing about their financial obligations as well as their assets is important. Encourage your parents to list their expenses so you can pay their bills for them. Documenting their utilities and other bills may seem like a hassle, but you will appreciate it if you suddenly have to start paying them regularly. If you live far away and aren’t familiar with the local providers, it’s especially helpful.
Know who your parents’ financial advisers are
Learn about any relationships your parents have with financial professionals. If you can meet with their accountant, investment adviser or attorney it would be useful to have the opportunity to meet them in case you need to start managing your parents’ finances. If your parents don’t like the idea of making those introductions, be certain to get the necessary contact information to step in for them.
Having a dependent parent can be demanding. With some planning, however, you can have enough information to effectively manage their finances and reduce some of the stress of handling financial issues. Contact us today at 608-210-1200 for more planning details.