Tips on How to Legally Take Over Parents Finances

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FAQS about Taking Over Finances Of An Elderly Parents

Why is it necessary to follow a sensitive approach while asking your parents to rely on you regarding their financial responsibilities?

A sensitive approach will make the responsibility handover process comfortable for both ends and leave no grounds for suspicion. It is ideal to start open-ended conversations early, ideally when your parents have just crossed their mid-50s and probably feel alright in executing their responsibilities.

Why is it necessary to keep your finances separate from your parents?

Even after you receive the authority to handle your parents' finances through a power of attorney, you must not maintain several joint accounts, as this may lead to frequent conflicts of interest. Also, when making decisions on their behalf, you are just a fiduciary and not the original owner of assets. Thus, to avoid any disputes later on, it is better to maintain separate financial profiles.

How to start helping elderly parents with their finances?

It is essential to build trust by establishing relevant conversations and offering help when they need them. The ideal approach will be to provide little assistance in specific processes regarding which they face the most difficulties. As they grow older, you can involve yourself further with their personal finances to ensure they meet their interests in the best possible manner.