Since last year, we have received many calls from boomers who are suddenly faced with a crisis involving a parent or relative that they are now in charge of solving. They are ill-prepared for this moment and often don’t know what to do. When this happens, they are faced with a myriad of issues and tasks.
According to a Harris Poll Survey, 20% of boomers said they have an aging family member who has diminished financial capacity; 42% have assumed at least some responsibility for financial decision making, 43% have had someone else assume responsibility for their family member’s finances and nearly half of all adult children have not discussed their parent’s post-retirement care.
Don’t wait for a crisis – get prepared now. There are many facets of being prepared: legal, financial, real estate, pets, day-to-day living,t and more. Making preparations while the loved one is alive and sound of mind will greatly reduce the pain of managing this process when the time comes.
Older seniors grew up in a world of paper and of keeping all possessions. They have paper checks, paper bills, paper records, photographs, newspapers, magazines, and more everywhere in their home. They are not online and neither are their documents. As they age, they have greater difficulty remembering where their accounts are, what needs to be paid and when; their stamp, coin, or gun collections, or that they put dollar bills into books in the bookcase. If they have emails, user names, and passwords, it is unlikely they remember them. There may be tax or water liens on their home not because there isn’t money to pay them, but because they put the bill in a drawer and/or didn’t open the mail.
What to do:
Divide and conquer. Identify all bills (annual, monthly, quarterly, intermittent). Pay those that need immediate attention, set up a payment schedule for all others; use autopay. Look at your own bills as a guide for categories that might be missing from your parent’s list, especially the annual ones such as real estate taxes, insurance, and water. Create a financial inventory of accounts. Make a list of IRA rollovers and annual mandatory minimum distribution requirements. Create a list of important documents such as legal documents, military records, titles, deeds, bank accounts, and assets such as stock certificates. If you can’t find the documents, file for replacements. If there are trusts, make sure all assets are listed in the trust, as often people forget to add new assets such as a vacation home to their trust.
Contact all advisers for your parents – attorneys, bankers, asset manager, CPA to ensure everything is accurate, up to date and ‘on-file.’ Most importantly, make sure the legal documents are up to date (will, living will, durable power of attorney, medical power of attorney, trusts, etc.). If not or you don’t know, contact their attorney to schedule a review. And, of course, if you do not have a durable power of attorney, your loved one must be present in any discussions.
Helping seniors and their families prepare in these times can take a village. To assist families in preparing this all-important information, we have created a Personal Affairs Record, which we are happy to provide. And, we offer a wide range of information and guidance to families. As daily money managers, we provide oversight of banks and other financial accounts. We are licensed, bonded, and insured and keep the family informed. We at Personal Affairs Management Group are here to make your life simple, secure, and stress-free.
