My mother who needed me to manage her finances
No one likes to think about their parent's finances. Well, maybe you secretly do, but you don't really want to have to deal with their money while you still have them in your life. Sometimes, life throws nasty punches and you want to be ready to cope. When the unthinkable happens, when your parent or parents can no longer manage their money, what do you do?
Instructions
1. Gather all the bank statements and/or passbooks (yes, some parents will still have those dinosaurs), dividend statements, mortgage, loans, insurance--car and house--information, and any other financial transactions. You might be lucky and have parents that kept all their important documents in a central place or showed you while they were well where everything is.
2. Or you may have to tear the house apart-- look at the bottom and top of closets, look in drawers in the very back buried so no one could see them, look in boxes under the bed, and when you are done, look again. There is probably something else tucked away where you would least expect it to be.
3. Look at the statements and see if your parent was smart enough to list you or a sibling as a joint account owner. This will definitely make things easier.
4. Make sure you have the Power of Attorney. If you don't know, you might have a problem. Try to get your parent to sign the document to give you this right. It is vital.
5. Once you have this power, take charge. Consult with an estate lawyer about the best course of action. Many times consolidating all the income in one place is the best thing to do when managing an incapacitated parent's health needs.
6. Each account will have different rules, regulations, and requirements for closing it out. You may have to write letters, copy information relevant to the account, get items notarized or a get a bank signature note (same as notarized except it is a signed letter from a bank), get letters from doctors. You will be surprised how time consuming this is.
7. When all accounts are closed out, put them all in one money market fund. You will then be equipped to pay for your parent's bills. Take a deep breath. It is a big responsibility, but you can do it.
