Financial Affairs. Where's the Money and Who's Writing the Checks

Financial Affairs may be a taboo subject, but somebody has to know the details and how things need to be handled. Each individual should handle their own day to day business as long as possible. When it's time to pass that responsibility to someone else, a trusted family member, friend or caregiver is usually designated to handle those affairs. When the elder citizen's holdings demand more expertise a trusted certified financial planner and/or personal attorney should be involved and a plan created to protect and maximize those interests.

The Caregiver should be aware of who the responsible party is for handling various financial matters; that insurance is force (active) for emergencies, physician visits, and hospital stays. An operating bank account should be established if not already in effect, with the caregiver allowed to sign checks if necessary for groceries, medicines, and other daily expenses. Funds in that account must be replenished to meet the constant needs. With the use of credit cards today, an account may be used for the necessary items with the invoices sent to the individual paying the bills if the caregiver is not the designated person with limits to discourage abuse. Where significant assets exist, oversight by a family member is in order. Members of the family need to be aware of the operating accounts of elders to be sure that adequate funds are available for the daily living. Budget current and projected Elder Care Costs as noted on the attached page for an idea of those costs and consider how much they have increased over the last few years.

We cannot predict our mental or physical incapacitation and need someone we can rely on for help should we be faced with the situation. A financial adviser should be part of the trusted management team when advisable to protect assets. Good advice for the elder citizen and the younger generation.