How to be a responsible financial caregiver

When our family members grow older it can be a difficult fact of life to accept. As they age and become more dependent on aid from others, it’s important you do what you can to provide them not only with a happy and healthy lifestyle, but also safe financial standing.

A comprehensive study by MetLife, found that older Americans lose close to $1.6 billion annually to financial crimes. It is natural to think that strangers commit these abuses, but unfortunately, many occur at the hands of their own family members.

Even if you are not currently entrusted with the safekeeping of an elderly loved one’s finances, it is essential to prepare yourself because this task often arises unexpectedly. In recognition of National Family Caregiver Month, here are some things to consider to help you provide responsible and effective financial assistance.

• Recognize potential threats: As mentioned above, elder financial abuse is extremely prevalent, especially among older American women. Vulnerabilities and their higher net worth make the elderly prime targets for financial crime. As a caregiver, help your loved one understand information presented to them to avoid any confusion or exploitation. Encourage them to consult with you before they make financial decisions. A second opinion is never a bad idea.
• Understand your role: What exactly are your responsibilities as a financial caregiver? Have you been given Power of Attorney? In order to best execute your role, learn the exact specifications of your involvement, even if that means doing your research or consulting a professional.
• Keep detailed records: As with any important aspect of your own life, when dealing with an older family member’s finances, it is critical to stay organized. Whether you chose to keep paper documents or scanned images on your computer, maintaining careful records will benefit you in the end. There is nothing worse than being unable to locate something when you need it. As the saying goes, “it’s better to be safe than sorry.”