Ways to Protect Elderly Parents Finances
As a child of an aging parent, you can take measures to protect your parents’ finances. For starters, you should evaluate all the bills your parents receive. Develop a spending plan and budget. Talk with creditors directly if possible and consider contacting an attorney or certified credit counselor. If necessary, ensure your parents have granted you power of attorney and attend counseling sessions. Moreover, you should ensure that they have signed all necessary documents.
Financial exploitation is a major problem among elderly people, who are often the victims of shady salespeople and outright scams. According to the FBI, millions of seniors suffer from financial elder abuse each year. It’s essential to protect your parents’ finances by taking steps to ensure their independence and dignity. It’s also important to discuss elder fraud with your parents and suggest they install a monitoring system to ensure they’re getting the financial advice they need.
Another way to protect your elderly parents’ finances is to hire a financial planner. If you aren’t sure about your own financial expertise, you can hire a financial planner to guide you through the process. Having an expert review all the important financial documents your parents have is essential for their future. In addition to ensuring that your parents’ assets are safe, you should also make sure that your parents know where they keep their important financial documents.
Having a durable power of attorney for your parents can protect them from monetary scams. In addition to these, a durable power of attorney can provide the peace of mind needed for elders with limited memory. Also, the National Do Not Call Registry is a great tool for elder abuse prevention. Once you have a revocable trust in place, you and your parents are better protected from financial abuse.
One of the best ways to protect your parent’s finances is to stay involved. Keep yourself informed of their financial activities, including checking account activity and investments. Make sure to review their investments portfolios regularly to prevent suspicious activity. Assist your parents with their banking activities, too. The best way to protect their finances is to be involved and make them talk about their money. Ask them how much money they have in the bank and in investments.
Another way to protect your parents’ finances is to collect documents that prove their financial capacity. These documents can be difficult to collect from your parent, but they are essential if they become incapacitated. Moreover, if your parents are reticent to share financial information with you, they should at least tell you where to find it. Being the financial detective is not an easy task during a time of crisis, so you should make a list of all expenses, bills and assets.
Keeping an eye on your parent’s spending habits is also essential. The elderly may have a tendency to overspend or spend money on a particular hobby. They may also be concerned about future expenses. If you’re unable to visit them regularly, consider helping them manage their finances from a distance. But remember that it can be awkward to ask about finances, so keep your distance in mind. You can share the list of accounts with your loved ones by text or phone.