Older adults are at a higher risk of financial scams than younger individuals. In 2023 alone, there were 536 complaints filed with the U.S. Senate Special Committee on Aging Fraud Hotline. Those are just the cases that were reported.
Fortunately, McKinney, TX, is known for its strong sense of community and proactive support systems for seniors. One way for children to protect their aging parents from scams is to take over their finances. This way, they can help their family make better financial decisions.
Here's your McKinney eldercare guide and checklist for taking over parents' finances.
Organizing senior finances begins with a conversation. The best time to start the discussion is before there's a crisis.
It may feel uncomfortable, but frame the conversation around protecting their interests and ensuring their wishes are honored. This will help reduce tension and make them more open to talking.
Ask them how confident they are in managing their finances right now. Have they considered what would happen if they couldn't? Do they have concerns about fraud or scams?
Gather all important documents related to elder financial planning. Create a secure, centralized folder to store them. This folder can be either digital or physical.
Essential records include:
Organizing these documents will help you avoid surprises later on and ensure a smooth transition. You'll also thank yourself later when you don't have to hunt down something you should've already had filed away.
Create a basic budget outlining monthly income and recurring expenses. Pay attention to:
It's not uncommon for older adults to fall victim to recurring payments that go unnoticed amongst all their other bills. Tracking their expenses can help identify areas for improvement or where support may be needed.
Keep in mind that a person's veteran status often brings discounts and deals. They might not be taking advantage of these deals when they could to lower their spending.
Unless you have some kind of legal authority over your parents' finances, all you can do is give them advice. Family caregiver tools include documents such as a durable power of attorney and HIPAA authorization.
A power of attorney document gives an individual legal authority to manage financial matters for another person. The medical power of attorney version is needed to make healthcare decisions.
HIPAA authorization allows you to access your parents' medical records and billing information. Their living will and advanced directive outline preferences for end-of-life care.
One of the most important parts is organizing your parents' will and trust documents. Ensure they're up-to-date and reflect current wishes.
Most banks and financial institutions allow online account management. Utilizing these apps and websites can make managing finances for your family much simpler and quicker.
Make sure you:
In addition, you should have the login information for your parents' insurance policies and pricey subscriptions. Financial planning software and budgeting apps can help out a lot.
Seniors are often targets of financial fraud. They might sign up for scams online or send money to the wrong people.
You can protect your parents by ordering credit reports annually from the major bureaus. Freeze their credit if no new credit is needed to prevent them from opening more cards.
Sign them up for identity theft protection services. Review monthly account statements for any unauthorized or strange charges.
Evaluate whether your parents' current insurance coverage is sufficient and appropriate for their needs. They may have policies such as:
If they're overpaying for health insurance, it may be time to find another policy that better fits their needs. You may find out that their home insurance doesn't include flood damage coverage, even though it's a risk in their area.
Assessing their insurance coverage can help reduce costs and create better outcomes after an incident.
Medicare and other forms of insurance can help a lot when it comes to medical emergencies. However, not all expenses or medications are covered. Your senior money management should take into account the unexpected.
Set aside funds specifically for emergencies. Three to six months of expenses is generally a good rule of thumb.
This fund can also help with unexpected home repairs, caregiver needs, or temporary housing during transitions.
Long-term care is one of the most significant financial burdens seniors face. Some insurance plans only cover part-time nursing care or short-term custodial care. Others require a person to make under a certain amount per month to qualify for coverage.
Take some time to research assisted living communities and in-home care options. Adult day programs are a great way to keep seniors occupied as they enter retirement.
You don't have to manage everything alone. Consider involving:
Use family caregiver tools like Carely to let multiple family members collaborate on caregiving duties and financial tracking.
Your checklist for taking over parents' finances may not look the same as another person's list. It's important to plan your process around your loved one's specific needs. They may need more or less help depending on their independence and mental capabilities.
Redbud Place Assisted Living provides assisted living in the McKinney area. Our residents have access to numerous amenities such as exercise classes, pet therapy, and much more. Contact us with questions about our community and to schedule a tour.