10 Things You Should Know About Your Parents' Finances
Becoming a caregiver for aging parents can bring unexpected responsibilities, such as managing their finances. These helpful tips can help with senior financial planning, and help you navigate the role of financial caregiver when mom or dad need help or can no longer manage their money alone.
Financial Caregiving
About 92% of caregivers are handling finances on behalf of their loved ones, according to a Merrill Lynch Study.
The study also found that caregivers’ involvement with aging parents’ finances is likely to grow over time. Less than two years into caregiving, 35% of care recipients need full assistance managing their finances. Two or more years into caregiving, that number goes up to 53%.
It is beneficial to be prepared by asking your loved one the following questions below to learn more about how finances have been handled in the past, and what you can do to help them in the future:
10 Financial Questions to Ask Your Loved One
- Where do you keep financial records – and how are they accessed?
- What are your financial institutions (bank, investment firm, mortgage company, etc.), and where are the account numbers?
- What are your monthly expenses?
- How do you currently pay your bills (checks, online banking, automatic deductions, etc.)?
- What is your annual income, and where does it come from? (Pension, disability benefits, etc.)
- Do you receive Medicare, Medicaid or Social Security?
- What other medical health care insurance do you have?
- Do you have long-term care insurance?
- Do you have a financial planner, accountant, insurance agent or attorney, and what is their contact information?