As the Baby Boomers grow older and older, it is important for their children to help them with their financial matters. As a person grows older, seemingly everyday activities can be harder and harder to navigate. This includes financial matters. Because of that, it is particularly important to make sure that an elderly parent's finances are well-managed. Estate administration is critical for older parents.
If you have older parents, there are four things you should do to help them organize their finances. First, take an inventory of all of their assets including pensions, mutual funds, IRAs, bank accounts and so on. While making an inventory of these assets write down the account numbers, custodians, contact person and online login information. After a parent dies, power of attorney is required in order to access the accounts.
Second, tally the expenses that your parents have. Write down what bills they need to pay each month, who they make the checks to, the general monthly amount and the recipient's contact information.
Third, in order to simplify and to make sure payments are not missed, put all payments that can be on auto pay status.
Fourth, make sure your parents have important documents created for their estate plan. It may be a good idea to meet with an estate planning attorney to create a power-of-attorney document, health-care directive, trust and will.
Helping older parents with their financial matters can go a long way in making sure their later years are spent comfortably with minimum stress to their lives and to your life. An estate planning attorney can help create necessary documents and offer advice on how to help elderly parents.
Source: news.investors.com, "4 Tips For Helping Your Elders With Finances," Paul Katzeff, Feb. 13, 2015