First Steps To Taking Over Your Loved One's Finances - Senior Alert Medical

First Steps To Taking Over Your Loved One’s Finances

by Charlie Kimball · 0 comments

As people age, there are certain activities that become more difficult to perform. These activities range from driving to managing finances. Eventually, there comes a point where people are no longer able to handle these activities and the responsibility must be given to someone else. You need to become like their elderly alert systems and look out for their financial needs.

Where does the process start?

The process starts with the suspicion that your parents or loved ones are no longer able to handle their own finances.  The warning signs vary, but in general they show a marked irresponsibility with the way that they handle money that they had not previously demonstrated.

In order to keep their remaining money secure, you’ll need to gain control of their finances. Chances are they have social security, pension payments, even dividends from stocks and other investments to handle. In order for you to legally gain the ability to access their financial data and make decisions on their behalf, you will need to get power of attorney.

Getting power of attorney

In order to gain power of attorney, your loved one has to be of sound mind and understand what they are signing over. Your loved one may have already granted someone power of attorney in their living will in the event they become incapacitated, in which case this will need to be taken into account. If they are already incapacitated and have not specified power of attorney, speak with a lawyer about getting conservatorship over their assets instead.

There are three main types of financial power of attorney, plain, durable, and springing durable. You do not want the plain variety, as that gets revoked once your loved one becomes incapacitated. Durable power of attorney takes effect immediately and lasts through incapacitation. Springing durable power of attorney only takes effect once your loved one does become incapacitated.finances

Laws surrounding power of attorney do vary from state to state. You may need witnesses or notarization. Speak with a lawyer about the requirements in your state about obtaining this. Power of attorney is a safety net, much like gps medical alert systems.

What’s Next?

If you weren’t very good with your own finances, it’s going to be double the impact when you’re handling both your own finances and your loved one’s finances.  Keep the accounts separate at all times, as mixing the money can prove to be very confusing down the road.

Information is Key

Just like you need to be able to provide your loved one’s medical history to your elderly alert systems or gps medical alert systems, you need to know the situation of your loved one’s finances before they are unable to answer your questions.  In order to handle the details, you need to know everything that you possibly can.

This means that you need to know:

  • Where are the records kept?  Does your loved one have a computer program, use a shoebox, have a special ledger?

  • What banks are being used to store their money, and what are the bank account numbers associated with them?

  • Does your loved one have long-term health care insurance?

  • What are their passwords to online accounts?

Our loved ones are becoming increasingly tech savvy, and it’s going to be necessary to monitor these accounts, like elderly alert systems.

  • Do they have an investment planner, accountant, or someone who has been handling the money already?

You’re going to have to make the decision whether that person is going to keep handling the money.

  • Where does their money come from, and where does it go every month?

Get a good handle on their income and outlay, and you’ll be better equipped to give your loved one an allowance after making sure that their gps medical alert systems and other important expenses are taken care of.

  • Are they receiving monthly checks from Social Security or retirement?

  • Are they paying for extra health insurance?

Knowing the information means that you can put a strategy in place for handling the bills that arise.  Having that contingency and knowing how you’re going to ‘make it work’ also gives your loved ones peace of mind in knowing that they chose the right person to handle their affairs.

Like an elderly alert system or gps medical alert systems, having safeguards in place for your loved one’s finances is essential for moving forward.  They might not have reached that point, but the conversation about it is best had before the need is truly there.

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