Katherine’s parents are 80 years old, and she’s taking on more and more caretaking duties for them. Besides looking after their physical well-being, she’s becoming more involved in managing their financial affairs. What are some things she should pay attention to?
If her parents do not yet have an estate plan, or at minimum a will and powers of attorney (financial and healthcare), Katherine needs to help them get this done. Assuming they designate Katherine as power of attorney, she’ll then be able make decisions on their behalf should they become incapacitated.
Katherine should also ask them to list their financial information and contacts. The list should include all accounts and account numbers, the usernames, passwords, and the location of all important documents, including tax filings. Don’t forget to include their Medicare, Social Security, and driver’s license numbers. Also, she needs to know how insurance premiums and other bills are paid.
Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.