Ten tips

How to help aging parents manage their money.

Compiled by LAURA T. COFFEY

© St. Petersburg Times, published October 15, 2000

It can be jarring to realize that your aging parent might be having difficulty keeping up with his or her personal finances. If your parent is among the 500,000 older people in the United States who need help managing their financial affairs, consider these tips.

1. Be observant. Ask for your parent's permission and assistance to examine his or her checkbook, bank statements and canceled checks. Look for inappropriate or duplicate payments; failure to keep track of deposits and expenditures; numerous payments to home-shopping networks, sweepstakes or other contests; and unusually large charitable donations or payments to a person unknown to you.

2. View a guardian as a last resort. Courts appoint guardians to decide financial or personal matters for people who are unable to care for themselves. Recognize that a guardianship would deprive your parent of the right to make his or her own decisions.

3. Consider a power of attorney. A durable or a springing power of attorney would allow your parent to appoint a trustworthy person to help manage his or her finances. Encourage your parent to meet with a lawyer to discuss this option.

4. Reflect on the "representative payee" alternative. If your parent receives income from Social Security, he or she may ask the Social Security Administration to appoint a representative payee to receive the monthly checks and use the money to pay his or her living expenses. Call (800) 772-1213 for details.

5. Ponder the living trust option. Living trusts allow people to appoint a trustee to manage their property during their lifetime if they become disabled. Consult with an attorney who has experience with wills, trusts, the probate process and Medicaid rules.

6. Look into daily money-management services. Daily money managers handle a variety of tasks, such as organizing financial and insurance records; establishing a budget; helping with check-writing and checkbook balancing; and serving as a representative payee.

7. Know what to expect. Daily money managers generally charge $25 to $100 an hour, and many of their clients require only a few hours of help each month. Reduced-fee or free services may be available for low-income clients in your city or county.

8. Check references. Interview several daily money manager candidates, and talk with the money managers' other clients about their experiences. Investigate complaint histories by calling the Florida Department of Agriculture and Consumer Services at (800) HELP-FLA (435-7352) and the Better Business Bureau at (800) 955-5100.

9. If all else fails. If your parent is not capable of putting any of these plans into effect, you may need to consider pursuing a guardianship. Consult with an attorney before taking this serious step.

10. For more information. Call the Eldercare Locator, a nationwide, toll-free assistance directory sponsored by the National Association of Area Agencies on Aging, at (800) 677-1116.

- Sources: AARP (http://www.aarp.org); Federal Trade Commission (http://www.ftc.gov); American Association of Daily Money Managers (http://www.aadmm.com/listof.htm); and Administration on Aging (http://www.aoa.dhhs.gov/elderpage/locator.html).

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