In WTOP鈥檚 series 鈥淧arenting Your Parents,鈥� reporter Sandra Jones delves into a difficult task many adults will eventually face 鈥� taking care of your parents.
Here in Part 2, Jones spoke to experts about when and how to manage their finances before it鈥檚 too late. Read Part 1 here.
Have you ever wondered when the best time is to step in and handle your aging parents鈥� finances?
It can be difficult to talk about money with your aging parents. But experts say the sooner you do it, the easier it will be to protect their well-being.
Amy Goyer, a caregiver expert with AARP, advised creating a list of your parents鈥� personal information, financial accounts and bills.
鈥淒o they have retirement savings? What鈥檚 their budget? What鈥檚 their income? Do they have debt?鈥� Goyer offered as examples of questions to investigate.
If you start to see problems or mail piling up, Goyer said they may not be opening their bills at all. Check to see if they have auto-pay set up for bills they can pay online and if it is going smoothly.
Goyer said you can listen out for warning signs. For example: 鈥淚f you hear them say, ‘Oh, I overdrew my checking again. I didn鈥檛 realize that bill was coming in,’ or they鈥檙e having trouble tracking that.”
Once you begin talking with your parents about their finances, Goyer suggested making sure that you approach it in a caring and loving way.
鈥漎ou鈥檙e not trying to take over their lives. You鈥檙e not judging them, because if they know they鈥檙e not doing quite what they used to do, they鈥檙e going to be feeling bad about themselves,鈥� Goyer said.
Getting the legal right to handle your aging parents鈥� finances can make the process much easier and less stressful.
But do you know where to start to avoid a crisis later?
Experts say you should find out what the rules are in your state and sit down with an estate planning attorney or go to a seminar.
Attorney Amanda Singleton with AARP said it鈥檚 critical to have a clear will or trust in place.
“Those dictate what happens, the people that you nominate to close up your final affairs, to distribute inheritance to people or charities of your choosing and to really manage any final loose ends that you have here,” Singleton said.
She said it can save you a lot of time and stress.
鈥淲hen you鈥檙e not wrapped up in a court case, when your wishes are clear and everything has been expressed or done through transfer on death or beneficiary designations, that reduces the ability for conflict. That reduces the opportunity for family members to disagree and duke it out in court,鈥� Singleton said.
- Read Part 3 of WTOP’s series, “Parenting Your Parents,” where Jones talks to experts about how to decide between assisted living and other senior care options for aging parents.
How to financially prepare your parents for moving into a facility
At some point, your aging parents will deal with life-changing health conditions and may not be able to live on their own. So, moving them to an assisted living facility could be the best option. But how do you financially prepare them for it?
Experts advise planning ahead to avoid a hefty bill down the road. But remember, it鈥檚 all about their quality of life.
Gerontologist Marlena del Hierro with said to compare the cost of your parents aging at home versus in an assisted living facility.
鈥淚t helps so that it鈥檚 not a sticker shock, because senior care is expensive. Unfortunately, Medicare does not pay for senior living,鈥� Del Hierro said.
She said finding a financial planner and utilizing other resources can help your parents make the best decision.
鈥淲hether you鈥檙e reaching out to your geriatric care manager or a senior living expert, those people exist. Perhaps your family, your friends and your family, people who have gone through this, are other great resources for you. You shouldn鈥檛 do this alone,鈥� Del Hierro said.
And don鈥檛 forget to take a look at your own finances.
鈥淢ake sure you鈥檙e aware what you need to be able to save and that you鈥檙e living comfortably or as comfortable as you can because you might be contributing here and there to your loved ones’ needs,鈥� Del Hierro said.
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