Statistics show that seniors are living longer, so there is a good chance that adult children of aging parents will need to manage either one or both of their parents’ finances. As people get older, families may also need to deal with illness and issues caused by age, including:
- Accidents
- Illnesses
- Loss of memory or other mental abilities
If your parents become incapable of making financial decisions, you may need to take over their financial responsibilities. Asking your parents key financial questions now will help you to be a better caregiver. It may even present you with the opportunity to help them with their estate planning.
Here key questions to ask:
1. What Are Your Social Security Numbers?
Social Security numbers offer a lot of information about people, so if you plan to take over your parents’ financial responsibilities, it is important that you know your parents’ numbers. This information will help you assist them with financial business, fill out applications, and resolve any financial problems that may arise.
Older individuals are also eligible for certain Social Security benefits. Visit the Social Security Administration’s website to learn more about benefits for the elderly (www.ssa.gov/).
2. Do You Have a Will?
Your parent’s will, or lack of a will, can be a touchy subject. Some parents want to keep their last wishes confidential until the time of their death. Others are more open about how they wish their assets to be distributed. Even if your parents do not reveal the contents of their will, it is best to find out if they have one and where they keep it.
3. Do You Have Life Insurance?
Some elderly parents have life insurance policies that pay for funeral arrangements or pay out an amount to a beneficiary. Find out what your parents have and get policy numbers in the event that you need access to these accounts.
4. What Are Your Funeral Arrangements?
Some people make their funeral wishes known; some have already made and prepaid for their funeral arrangements. As delicate as this subject might be to discuss, it is best to know what your parent’s wishes are so that you can carry them out. If possible, get this information in writing, and try to find out how the funeral will be paid for.
To learn more about making funeral arrangements, visit the AARP website (www.aarp.org/family/lifeafterloss/articles/funeral_arrangements.html).
5. Do You Have a Health Care Proxy?
If one or both of your parents become ill, it is important to know who will make their health care decisions. A living will puts these wishes in writing. Legally, there is a durable power of attorney for health care. Your parents appoint a health care proxy or agent to make medical decisions on their behalf. They should discuss their wishes with their agent prior to any medical event so that he or she will know how to proceed when and if the need arises.
6. Do You Have a Power of Attorney?
There may come a point in time when your parents are unable to manage their finances due to illness. A durable power of attorney for finances is a legal document that appoints an agent to be legally responsible for another person’s financial business. If your parents do not have a power of attorney, then a family member or friend may have to ask the court for authority over their financial affairs.
There are some variables in the ways powers of attorney are written, so it is important to consult with an attorney in your state and the state where your parents reside. To learn more about powers of attorney, visit the website of the American Bar Association (www.abanet.org/rppt/public/power-of-atty.html).
7. What Is Your Income?
Some elderly people receive a Social Security check as income; others have pensions, annuities, and other incomes. Find out what income your parents have, and get the names of financial institutions and account numbers where they keep this money.
As your parents age, you can help protect them from identity theft, fraud, and people trying to take advantage of them by periodically checking their credit card balances, account(s), and other financial documents to make sure everything is in order.
8. Do You Have Any Assets or Property?
Your parents might have a family home, land, commercial real estate, investment properties, time-shares, or other properties. Find out if they still pay for these properties or if they own them.
9. What Are Your Long-term Health Care Plans?
Know what your parents’ wishes are if they are no longer able to live in their home independently. Their financial disposition will dictate some of their options. However, it is always good to know their desires.
Find out if they have long-term health care insurance. To understand the benefits of this type of insurance, visit Consumer Reports’ website.
10. Who Are Your Doctors, What Are Your Medications, and What Health Insurance Coverage Do You Have?
Know who your parents’ doctors are so you can become involved in their medical care, if need be. It is also good to know their prescription medicines. You may even want to write the names of the medications and the dosage amounts down in a journal; if a parent has to go to an emergency room and cannot directly communicate, you can tell the medical personnel prescriptions your parent is taking and point out any allergies. You should also find out about health insurance and policy numbers in case you need to contact providers or pay bills.
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