Helping An Older Loved One Manage Their Money

If you have an elderly loved one in your life, then caring for them can become a major point of focus, especially if they are alone and do not have many people to rely on. However, aside from their physical and mental health, their financial health can come into question, as well. If you’re worried that an older loved one may be running into some financial trouble, there may be a lot you can do to help.

Managing their day-to-day accounts

You might want to help your loved one with their regular financial tasks, for instance in collecting their pension, paying off their bills, and so on. If that’s the case, then you may need to apply for a third party mandate with the help of your loved one. Effectively, this involves them signing over their rights to you so that the bank will not flag you if, for instance, you are accessing their account or making use of their PIN number, or you may want to set up a joint account with them instead.

Helping them find an income

In some cases, you might be worried that your loved one won’t have enough money to take care of all of their essentials, in the future. You can always pitch in directly, but this might not be the most reliable or sensible option. Instead, you might be able to help them ensure their own income. For instance, a reverse mortgage could help them unlock the equity they have in their property, especially if they don’t plan on leaving it to any heirs. This way, you can keep some money coming in for them to use on regular expenses.

Keep an eye out for scams

The sad fact is that the elderly are a lot more vulnerable to financial scams that can see them losing a lot of money. Your loved one might be plenty savvy, but there are always new scams coming out and it can be difficult to keep up to date with them. It’s a good idea to encourage your loved one not to sign any agreements, speak about money on the phone, or share any financial details without getting you involved first, and to do what you can to stay abreast of the latest scams.

Make sure you’re legally protected

When it comes to vulnerable people and their money, it is only natural that some may be concerned. You may need to go above and beyond in showing that you’re acting in their interest, first and foremost, such as keeping complete records of any financial arrangement you might help them into. If you’re taking over the person’s finances in reality, then you should make it legal and formal as well, such as by applying for Power of Attorney with their consent. If this isn’t done while your loved one has mental capacity, it can invite trouble, later.

It is important to act with the utmost care when it comes to another persons’ money. However, that isn’t to say that you can’t be of any help. Just be responsible.