Do you have a parent or other elderly relative whose money management skills are slipping? You may need to find help or become a helper yourself. Here are some warning signs of problems and suggestions for handling them. Talk with the older person about which solutions might be right for him or her.
1. Put bills on automatic. Are bills piling up? Have utilities ever been turned off for nonpayment? Automate bill paying as much as possible, signing up for automatic monthly drafts from a checking account for mortgage payments, utilities and any essential services. If your parents can no longer handle a checking account themselves, you may be able to do their banking online.
2. Use direct deposit. Do checks sometimes sit around uncashed? By signing up for direct deposit, pension checks, Social Security payments, interest and dividend checks can go directly into your parents' checking account.
3. Stay on top of taxes. IRS notices are definitely a sign of a problem. If neither you nor your parents can handle the tax return and any required estimated tax payments, turn the job over to a tax professional.
4. Check the junk mail. Piles of junk mail warrant further investigation. Find out if your parents have been buying magazine subscriptions or junk products, thinking they'll improve their chances of winning a sweepstakes. Contact the senders and ask to be removed from the mailing list. Consider a change of address to a post office box you can check.
5. Stop phone solicitations. Put telephone numbers on the national "do not call" list by going to www.donotcall.gov or calling toll-free 1-888-382-1222. Having caller ID installed may be helpful in some instances. People living alone are particularly vulnerable to phone solicitors with friendly voices.
6. Check up on caregivers. Before hiring a caregiver, check public records to see if the person has an arrest record. Call references. Investigate if your parents suddenly shun family and friends, seeing only the caregiver. To report elder abuse or exploitation, call toll-free 1-800-962-2873.
7. Monitor investments. Are investment records scattered around the house? At a minimum, set up a system for collecting and reviewing statements and tracking investment maturities. Review statements to be sure the investments are appropriate and they aren't being bought and sold just to generate commissions. Investigate anything that looks unusual. To report financial fraud, call toll-free 1-800-848-3792.
8. Watch for gambling problems. Trips to casinos and playing the lottery are entertainment for many people, but they can become addictive. Counseling might help if a problem develops.
9. Get an estate plan. Everyone needs at least a will and a durable power of attorney. In some instances a trust may be appropriate. Talk to a lawyer about what's best in your parents' situation.
10. Consider guardianship as a last resort. If your parents have become incompetent and less drastic solutions are not available, you may want to petition the court for guardianship to protect your parents and their assets. You'll need to talk to a lawyer.
Sources: Financial Planning Association (www.fpanet.org) Florida Department of Elder Affairs (elderaffairs.state.fl.us), North American Securities Administrators Association (www.nasaa.org)[Last modified June 12, 2004, 23:36:22]
