Checklist for Taking Over Parents' Finances

According to the American Association of Retired Persons (AARP), about 42 million adults in the United States are caring for their relatives above 50. As a caregiver to an older parent, you're most likely responsible for their health and well-being. This involves taking them to the doctor, helping them around the house, and ensuring they take their medications on time.

Managing finances for older parents can be the most challenging responsibility of a caregiver. So, how do you handle your loved one's finances when planning for care at Arbor View in Burlington, Wisconsin?

Let's discuss a checklist for taking over parents' finances.

Have a Conversation With Your Parents

Discuss your senior parents' finances before they need care or in case of an emergency. This way, you'll know where all legal documents are stored and the money available for senior care budgeting. In addition, speak with your relatives and siblings to ensure you're on the same page.

Decide which of you should start the money conversation with your parents and what your roles are if they require assistance.

Enquire Detailed Information About Your Parents' Finances

One of the most vital financial caregiving tips is encouraging parents to share details about their finances for proper preparation and planning in an emergency. If your loved ones find it difficult to talk to you, let them write down this information and inform you how to access it. In cases where your parents are incapacitated or have memory loss, you may have to find out about their finances yourself.

Start by looking into their credit card and bank statements, wallet, mail, checkbooks, or tax returns. Besides, take inventory of their property, sources of income, real estate holdings, debts, investments, and personal items. Locate their insurance policies, cards, lockbox keys, and property title deeds.

Additionally, come up with a list of your parents' data, including the following:

Veterans ID
Driver's license numbers
Social Security numbers
Birthdays

This information will come in handy, especially when placing your parents in an assisted living community in Burlington, WI. Other necessary credentials to store carefully include:

Financial accounts: Usernames, passwords, account numbers
Estate planning documents: Health and financial care power of attorney, trusts or wills, advance directives
Monthly, annual, and quarterly bills: Include service provider contact numbers, account numbers, passwords, and usernames.

Gain Legal Rights to Transact Your Parents' Finances

Before you begin managing finances for aging parents, you require a legal right to decide on their behalf. Having your parents' financial documents doesn't guarantee you access to their accounts. You must be their court-appointed guardian or conservator, agent under power of attorney, joint account trustee, or owner.

Power of attorney (POA) is a document signed by a competent adult to allow another individual to make crucial decisions on your behalf. This document permits you to make general, medical, or financial decisions.

By executing a power of attorney with your loved one, you have legal authority to make crucial decisions if your parent cannot. Reach out to a lawyer specializing in elder law to draft a power of attorney that suits your preferences and needs.

In case your parents are incapacitated or no longer competent and you're not named as their POA, you'll need to go to court and petition to be named as their guardian or conservator. This process can be expensive and take a long time. Plus, you'll have to file annual financial reports explaining how you manage your aging parent's finances.

Notify Government Agencies and Financial Institutions of Your POA Status

You'll be required to show the original or a copy of the POA document before you take any action on behalf of your parents in Arbor View Senior Living Community. However, remember not to give any institution the POA document to keep. Financial institutions in the United States are required to accept POA documents that are notarized and signed.

Moreover, if your parents are retired soldiers, contact the Veterans Affairs Department and ask to be appointed a fiduciary. This measure enables you to manage their veterans' benefits for proper eldercare cost planning.

Keep Records of How You Spend Their Money

Keeping records is essential in ensuring your parents' finances are managed appropriately. Besides, your siblings and family members may ask how you spend their loved ones' money. Here are various methods you can use to keep records of your parent's finances:

Track your spending
Keep a list of all payments and purchases
Record any payment you get from your parents
Store their records and financial statements in a filing system

Signs It's Time to Create a Checklist for Taking Over Parents' Finances

As your parents age, there are specific indicators to look out for to begin creating a family planning checklist. If you've already discussed this with them, you already have a plan to assist them when the time comes. Below are some signs to start senior care budgeting:

Loss of a spouse: If one of your parents loses their spouse who was managing the finances, it's your responsibility to step up
Unopened mail: If you notice piles of unopened mail, it may be a sign that your parents are overwhelmed
Memory issues: In case your parents experience cognitive decline, take over their finances before their condition worsens
Money complaints: If you notice some of their bills are past due, or they have problems paying for their expenses, it's time to intervene.
Loneliness: It's easy for isolated or lonely seniors to fall for fraud, making it crucial for you to step in and manage their finances

Plan Your Parents' Eldercare at Arbor View Assisted Living and Memory Care Community

As your parents grow older, it reaches a point where you have to manage their finances and make important decisions on their behalf. The above checklist for taking over parents' finances will make the process as comfortable and seamless as possible. Managing your parents' finances also ensures you choose a reasonable and affordable retirement community for them.

At Arbor View Assisted Living and Memory Care Community in Burlington, WI, we offer various socialization opportunities and activities, such as boom clubs and exercise classes, that nourish our residents' minds, bodies, and souls. We also have a veteran's program where new residents get 50% off their first month's rent every year.