Perhaps it seems like your senior parents are losing track of their finances. You might be worried about their spending habits or their lack of organization. If your parents need round-the-clock care, you may want to look into an assisted living facility such as Alder Terrace. But if they simply need some help handling their finances, these tips can help you take care of them.
Keep Track of Any Concerning Signs
Have you noticed any signs around your parents’ home indicating that something might be wrong? Maybe you saw stacks of unopened envelopes in their kitchen, even though they used to keep their home quite tidy. Or maybe you’ve noticed packages from strange purchases that they’ve mentioned. If your parents have suddenly become disorganized or adopted odd spending habits, they may not be able to manage their own finances.
Note Any Medical Problems
Have your parents been struggling with medical issues such as blurry vision or memory problems? If so, it’s probably time to step in when it comes to their finances. Credit Karma also suggests checking in with their neighbors and friends if you feel comfortable doing so – they might have noticed concerning behaviors that you wouldn’t see unless you lived with your parents.
Manage Their Finances as a Family
If you plan to take over your parents’ finances for them, you’ll need to have an in-depth conversation with them about it first. You may also need to get your siblings involved. To start this conversation, Principal suggests bringing up a gentler topic first, like their general plans for retirement. Then you can bring up your concerns and broach the idea of taking on certain financial responsibilities for them, such as creating monthly budgets, filing their taxes, paying off their credit card bills on time, or even helping them set up a power of attorney. If they agree to let you manage their finances, you’ll need to get information on their bank accounts as well as any benefits they receive, like Social Security, Medicaid, or Medicare.
Encourage Them to Sell Their Business
If your parents are business owners, and you’ve realized that they’re no longer capable of managing their finances on their own, it’s time to encourage them to sell their business. This may take more than one conversation, so be patient. And before they get ready to officially sell it, make sure to get a professional valuation carried out so that you can accurately determine how much the business is worth. This valuation should include all of the company assets, such as the real estate and inventory.
Of course, it never hurts to talk to a financial advisor in this situation. By talking to an advisor, you can get expert guidance on your parents’ specific situation. Try to seek out an advisor who works with families and offers services geared towards seniors.
Furthermore, if you’re worried about your parents’ overall quality of life, you may want to bring in a part-time caregiver who can assist them with daily tasks. By helping your parents with their finances and hiring a caregiver to lend them a hand during the day, you can enjoy peace of mind.
It can be difficult to talk to your parents about their finances – and taking control of their financial situation for their benefit can be even more complicated. That’s why it’s important to approach this issue with a plan in mind. With these suggestions, you’ll be ready to give your parents the help they need so that they can get their finances under control.
Are you seeking an assisted living facility for your senior loved ones? Find a home for them at Alder Terrace. Fill out the contact form on our website today to schedule a consultation.
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