As your parents age, you may notice a decline in their ability to handle their finances. This natural side effect of aging is common among adults as they venture further into their 60s and 70s. The degree of cognitive decline can vary dramatically between seniors, but in many cases, it’s only a matter of time before your parent or loved one will require some level of assistance.
According to a study conducted by the National Center for Help Statistics, five to 10 percent of older Americans need some degree of help with money management. However, many millennial families find it difficult to confront their aging parents about their financial situation, even though failure to do so could result in financial difficulties down the road.
That’s why it’s best to make your own assessment of the situation sooner rather than later. In the event that your parents do need financial assistance, we’ve laid out everything you need to cover below.
Table of Contents
- Why You Need to Have the Conversation
- Offer Money Management Assistance
- Locate Important Financial Documents
- Access Their Safe-Deposit Box
- Update Important End-of-Life Legal Documents
- Create a Personal Care Agreement
Why You Need to Have the Conversation
Even if you think your parents are completely capable of handling their finances on their own, it’s still a good idea to inquire about their financial state. Are there any substantial debts you should be aware of? If so, how are they doing with the payments? Are they having any issues with monthly living expenses?
If your parents aren’t willingly transparent about their finances, it’s best to observe their behavior for signs of financial hardship, reckless spending, or fraud. If these issues remain unaddressed, it could cause unnecessary financial problems later.
Here are some telltale signs that your parents may need a helping a hand:
- You notice unpaid bills, second notices, or bills paid more than once.
- You see stacks of unopened mail.
- You find unusual purchases on debit or credit card account statements.
- You discover contributions to charities or…
This article was sourced from Bestow.