The Caring Corner®
Helping your Loved One Manage Expenses
Managing the expenses of your loved one while you’re caring for him or her can be overwhelming. Now, you are responsible for two times as many expenses. Theirs and yours. Here are some helpful tips on how to manage the financial headaches and provide your loved ones the care they deserve.
Have a Power of Attorney
With a power of attorney in place, you will have the appropriate authority for executing financial decisions on behalf of your elderly loved one. You have to get this in place before they lose their decision-making capability. A person with advanced dementia is not considered competent and therefore cannot execute a power of attorney. You must have this discussion well in advance.
After you have the POA in place, get in touch with your parents’ banks, investment offices, etc. Introduce yourselves to the people who have been assisting your parents and let them know you will be a main point of contact. Be prepared to share the power of attorney document to establish your right to enter into these conversations.
Have a Financial Plan
Financial planning is key. Take advantage of finance and organizational software that can help you stay organized and on time with the payments and expenses. Many software packages also include reminders that help you keep track of upcoming payments. Be sure that you keep your personal accounts separate from theirs as this could lead to a confusing situation. Once monthly expenses are entered into the software, consider setting up automatic bill pay as well. This ensures that no monthly bills are missed.
