Managing the Finances of Ageing Parents

Posted On: Tuesday, May 20th, 2014  In: Blog

Managing the Finances of Ageing Parents

Your ageing parents may still be enjoying their retirement in their own home but there will come a time when they need carers to assist them in their day to day lives. Whilst a carer can help them remain in their own home, the carer can’t help them to manage their finances and someone needs to ensure the bills get paid, money and investments are managed, and that the carer is also paid.

When children are born the parents are in control. It’s very hard for them to relinquish that control as the roles become reversed. This can cause tensions to arise when the adult children want to control the activities of their parents and is complicated further by sibling rivalry which may stem from the time one child stole the cherry from the cupcake.

Many adults find it difficult to talk to their families about who should take responsibility for parents’ finances and often the subject is taboo. Parents are sometimes secretive about their money and feel they’re losing control of their lives if their children become involved. However often the children are actually too busy themselves with their own families or live overseas and so just can’t be of practical assistance, all causing undue pressure and stress on already stretched family dynamics.

Don’t wait until there’s a crisis: it can be very stressful and time consuming trying to unravel finances, find documents and key contacts after an “event” has occurred and emotions are involved.

If you’re worrying about your parents’ and their ability to continue to manage their finances, forgetting to pay bills or paying them twice and being taken in by scammers and telephone sales calls (ID thieves and scammers target retirees who generally answer the phone and are less likely to hang up), make a plan now. I have even broken into a home for a client when she locked herself out. We then of course had to arrange to have the glass window fixed.

With internet banking, cloud accounting, emails and cloud storage of documents you can now set up a system that is transparent, secure and ensures that both parents and children are all kept informed of all activity and transactions to avert suspicion and avoid family conflict. Yes it does cost money for a service that the parents previously did themselves for free. However they saved for retirement just so that they could afford these services that become essential.

We have developed a unique system to take this stress away from the family whilst retaining financial transparency and accessibility for all parties involved.


 

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