How to Manage Your Loved One’s Finances

Blog Category: Finance

If a change occurs in your loved one’s health or ability to live independently, you’ll want to consider managing their finances.

Accept the Signs to Take Over the Finances

It’s time for you and your loved one to talk about their finances when you see these signs:

  • Avoiding activities or trips because they fear it will set them back financially
  • Constant unopened mail that could be unpaid bills or letters from creditors or collection agencies
  • Discomfort with talking about money or complaining about it
  • Frequent trips to the bank
  • Loneliness or loss of a spouse, making them susceptible to scams or overlooking new responsibilities
  • Physical or cognitive impairments that could affect their ability to handle errands, responsibilities, and finances
  • Unusual purchases that don’t fit their finances, lifestyle, or needs

Start Early and Slowly

Start the conversation well before needing to take over your loved one’s finances so no one is surprised by the sudden change. Don’t be judgmental or wait for them to bring the topic up. Lead with empathy when communicating with your loved one, and know that this conversation may happen multiple times.

Use these conversations to ease into managing their finances and get their written consent to permit you to take these responsibilities going forward. Be sure to notify the appropriate contacts of these changes. This is also a great opportunity for you as a caregiver to see the amount of important work that goes into planning for your own future.

Get Organized

Gather the following updated, valid information and keep it in a safe place:

  • Access to retirement benefits
  • Contact information for all of your loved one’s contacts
  • Debts, income, investments, personal items and heirlooms, property, and real estate holdings
  • Legal, financial, and estate planning documents, such as accounts, birth certificates, deeds, driver’s licenses, insurance policies, Social Security, and wills
  • Monthly, quarterly, and annual bills

Consolidate and Monitor Finances

Manage your loved one’s finances efficiently by:

  • Auditing their wallets by removing Medicare and Social Security cards and limiting to one credit and debit card
  • Blocking spam calls and monitoring their mail with the U.S. Postal Service’s informed delivery
  • Canceling duplicate or unused services and subscriptions
  • Creating a detailed list of financial statements, payments, and purchases
  • Establishing automatic bill payments, having electronic statements emailed to you, and opting your loved one out of paper statements
  • Following best practices for digital health and cyber security and freezing their credit reports
  • Keeping finances separate with a designated checking account or credit card for their bills to easily manage everyone’s budgets
  • Limiting spending by replacing their credit and debit cards with cash or a prepaid card
  • Signing up for credit and identity monitoring and account alerts

Handle Legal Matters

Finances tie into a lot of legalities, so be sure to address:

  • Funeral plans, life insurance, and last will and testament
  • How to manage senior taxes
  • Meeting with a financial advisor and attorney
  • Who will be the court-appointed conservator or guardian, join account owner, Power of Attorney (POA), and trustee

Do you have a plan in place for the future? Check out our free ebook, Plan the Future for You and Your Spouse’s Long-Term Care!

At Life Enriching Communities (LEC), we’re committed to ensuring patrons feel well-equipped to plan their future and age how they wish. Explore more resources on senior living or contact us today to learn more about our legacy of services and programs that bring meaning and purpose to every stage of life.