Guide: Managing the Finances of an Elderly Loved One

How to manage the finances of an elderly loved one

When your loved ones get older they may have deteriorated physically and need support and care with day to day tasks. It’s also important to take care of an elderly person’s mental health as over time they may become forgetful and struggle with once simple tasks, such as managing money. Being there for vulnerable and elderly loved ones is vital to prevent them from scams and potential identity theft. It can be a difficult initial discussion to have with a loved one, but planning finances and assisting in estate management could give them peace of mind for the future. Click the link for more info from an estate planning lawyer In Abington, PA.

Be open and talk it through

It’s never easy to face the reality of losing a loved once but it’s important to be open and discuss the possibilities before it’s too late. Help your loved one to understand that through estate management and planning you can prevent potential harm and protect their finances. 

Understanding the options

If your loved one agrees to your support there are several options you can take. One is the power of attorney which is a legal document that gives you the authority to make decisions about your loved one’s property and finances. Another option would be if a court of law has determined that your loved one is unable to manage their estate, you may be appointed as a guardian of property. This means you are officially the guardian of your loved one and will be involved in all personal decisions.

Understanding the responsibility

If you find yourself in legal control of your loved ones’ finances, you are then legally bound to act in their best interests. You should still try to involve them in as many decisions as possible and their needs should remain a priority at all times. If you break your trust and responsibility by abusing your power, you could have all responsibility removed and be at risk of being sued.

Avoiding the scammers

Sadly in today’s world, there is an abundance of scammers trying to steal your money.   Scammers can be convincing and persuasive, they often target elderly and vulnerable people by posing as someone in need of help or law enforcement needing money for an investigation. If an elderly person becomes a victim of a scam, it can devastate their finances and cause stress and fear. Suggest to your loved one that they discuss any big money decisions with you before acting on them. By offering to help with finances, you can provide peace of mind and ensure their estate remains protected and safe. It’s important to remind your loved one that you’re here to help, you’re not taking control and they can regain power at any point they wish to. Reassure them that you want to help them understand their rights and make sure they maintain authority through the process.