It’s very likely that there will come a time when you’ll have to take on more responsibility for an older relative’s finances. Often, this involves just planning and helping with day to day bills. But sometimes, it can require seeking permanent powers of attorney.
One of the biggest problems of any aging relative is that their capacity to make good decisions could be on the decline. Diseases such as Alzheimer’s steal elderly family members’ ability to make sound financial decisions. And disabilities might make it hard for them to physically go out and pay bills or collect pension payments. So what options are available for parents looking to take care of elderly finances?
Table of Contents
Provide Informal Support
Right now there are thousands of elderly people who have long-term care needs. But in most situations, care is set up so that they can continue to live as normal a life as possible. Often, their income and how it is spent is written down in a detailed care plan. The idea of the care plan is to set out what activities money should be spent on so that elderly people can continue to do the things they enjoy.
In many circumstances, the local council will supplement income as part of the care plan. This helps older people retain a sense of control over what they do and how they manage their money. Getting money from the local council can, however, involve a significant amount of paperwork.
Getting Formal Help
As explained by lifeinsuranceforseniorsover80.com, it’s sometimes necessary to get formal financial help. One of the biggest financial challenges families face is the transfer of wealth from one generation to the next. Some life insurance policies only cover funeral arrangements. So it’s important to make sure that your policy covers everything you need it to. If your elderly relative has a large estate, it’s you’ll probably want to choose something a little more comprehensive. If the property is large, for instance, you might need help paying legal fees.
Powers Of Attorney
In some situations, informal help simply isn’t enough to help an elderly relative manage their finances. Often, they need formal support. Of course, no decision to take over somebody else’s finances should be taken lightly. It’s a huge decision for both you and your elderly relative. And it comes with an enormous amount of responsibility.
The power of attorney is a legal arrangement that gives you financial decision-making authority over somebody else’s finances. Often, you’ll find that powers of attorney last until your relative dies, although this isn’t always the case.
When it comes to seeking powers of attorney, it’s best to plan ahead. Often, the power of attorney is granted when relatives have progressive mental conditions. The powers are designed to help protect their money when they’re unable to make their own decisions. Thus, it’s a good idea to plan ahead, when seeking to wrest control of another person’s finances.
According to myageingparent.com, the power of attorney doesn’t have to be activated immediately. You can start the process of setting it up while your relative is still of sound mind. And then you can wait until the time comes to activate your powers, should their condition deteriorate.