How to Help Your Aging Parents Manage Their Finances

Around 15% of the population is over age 65. Between 2014 and 2015, the number of citizens aged 65 and older grew by 1.6 million people, according to the United States Census Bureau. With the population of aging Americans growing, it is crucial to consider the best way to support one’s aging parents.

Adults age 65 may be more vulnerable. The elderly population can be victims of scams, negligent health care, and people taking advantage of them financially, particularly if they have any cognitive decline. If your parents are receptive to your help, what are the best ways to assist them as they age?

Protect Your Aging Parents from Scams 

Senior citizens have a higher risk of becoming victims of fraudulent scams. Nearly 1 out of every 20 elderly citizens reported that they had been exploited financially in a 2014 study based in New York. It is essential to talk to your parents about potential scams so they can be prepared and avoid them.

Online scammers can pose as people interested in finding love. These scammers establish a bond on the internet, state their passion, and then ask for money to help with an emergency. In another common scam, scammers pretend to be a grandchild who is in an emergency and needs money. These scammers ask the elderly not to tell their parents and base their scam on secrecy.

Another common scam involves someone calling or emailing an elderly person fraudulently claiming to from the government. The scammer will pretend to be an IRS agent and state that the victim owes taxes to the government. Make sure your elderly parents understand that government agencies would already have personal information. Legitimate government agents would never ask for personal information over the phone. 

Create a Financial Plan for Your Parent And Yourself. 

If your parents don’t already have a Florida estate plan in place, now is the time to help them create one. Ask to help them create a durable power of attorney. In this legal document, they will choose someone to make decisions about their finances if they become incapable of doing so themselves.

They should also create a Florida health care proxy. In this legal document, your parent(s) can choose a trusted individual or group of individuals to make healthcare decisions. The health care proxy will act on their behalf if they become incompetent.  Finally, your parent(s) should create a will that states how they’d like their assets to be distributed upon their death.

It is also vital that you have your finances and estate plan in order. Women who become caregivers of an elderly parent are twice as likely as others to end up living in poverty. This is because caretakers lose income due to taking time off work. Creating a budget and financial plan that considers the costs of possible elder care can help you in the future.

Let Us Help You Today

If you have concerns about your aging parent or need help arranging your own estate plans, contact the experienced St. Petersburg estate planning attorneys at Legacy Protection Lawyers, LLP to set up your appointment today. We are eager to assist you in any way we can.

Resources:

link.springer.com/article/10.1007/s11606-014-2946-2

census.gov/newsroom/facts-for-features/2017/cb17-ff08.html

https://www.legacyprotectionlawyers.com/do-i-need-to-update-my-estate-plans-when-i-move-to-florida/