How to Help an Elderly Loved One Manage Finances

Author: Speedy Tax Preparation & Bookkeeping Service |

Blogby Speedy Tax Preparation & Bookkeeping Service

Many people prefer to live alone and maintain their independence as they age. However, because some cognitive decline is expected in elderly people, it's important to keep an eye on the finances of your aging loved ones. You may need to take action if you believe that an elderly loved one is no longer capable of handling his or her finances properly. Here are three things you can do to help.

Make Sure the Help Is Needed

Many people refuse to admit when they are no longer able to handle finances independently. They may not tell you when they need help, so it's important to recognize the signs. Remember that occasionally a change in medication or a temporary physical problem can affect the way your loved one handles finances and daily living, and in these cases, you may only need to offer temporary assistance. However, if you see the following signs for several weeks in a row, it may be time for you to take action:

Take Over the Finances

If you're sure that your loved one is managing finances poorly, it is time to take action. You can take over simple tasks such as paying the monthly bills so that they are not forgotten. You may also need to gain a thorough understanding of your loved one's monthly expenses so that you understand how much money he or she spends on daily living.

If your loved one owns a business and can no longer run it, you can also help facilitate a sale. Contact a business evaluator to get a valuation so you understand how much the company is worth. Include all of your business assets in the valuation so that you get top price for the company.

Moved Your Loved One to an Assisted Living Facility

If cognitive decline has rendered an elderly loved one incapable of handling his or her finances, it may be a good idea to look into assisted living facilities. In an assisted living community, your loved one will receive aid with cooking, cleaning, doing laundry, dispersing medication, and managing finances. Not only does this reduce your stress, but it also ensures that your loved one has access to aid whenever it is needed instead of only when you can fit it into your busy schedule.

However, assisted living facilities are often expensive. Your loved one may need to sell off his or her home to afford the cost of moving to an assisted living community. To make sure the facility is within your budget, use a home proceeds calculator to get an estimate of what your loved one can expect to make after selling a house.

Knowing when to step in to assist an aging loved one with finances can be difficult. You don't want to overstep boundaries, but you also don't want someone that you love to lose money due to poor financial management. If you have noticed signs that you were elderly loved one can no longer manage his or her finances, you should take quick action to make sure he or she is taken care of in old age.

Speedy Tax Preparation & Bookkeeping Service can help you prepare taxes for your loved ones, whether it’s personal taxes or business-related taxes. Contact us at (910) 872-0321 for information about our services.