Knowledge is Power

A Check List for Aging Loved Ones

It’s a fact – a large portion of the U.S. population is getting older. The estimated number of Baby Boomers (those born between 1946 and 1964) is over 78 million people, which is roughly 26 percent of the entire population. Essentially, you or someone close to you is facing the reality of aging parents.

All of us have experienced aging through a loved one, a grandparent, aunt, or uncle. Some people experience mild aging effects, while others deteriorate rapidly. However, humans are living longer than ever before. For these reasons, it is imperative to engage in an open, and often times difficult, discussion with your parents regarding their long-term financial plans.

When broaching the subject of aging, other members of your family should be involved, along with professional counselors, if necessary. Below are important subjects to review:

Finances

In order to properly aid in your parent’s financial well being, it is necessary to understand and be familiar with their current income and liabilities. Income comes in many forms; from a pension, annuity, retirement account, social security, bank account, bonds, stock certificates, etc. Overall, it is important to know how much money is being received and from what sources.

A good first step is to gather a list of all account numbers, financial institutions, and financial statements with contact names and phone numbers. It would help to consolidate your loved one’s assets as efficiently as possible. Secondly, find out where important documents are stored. Some people, especially those who lived through the Great Depression, prefer to keep cash on hand. It may be hidden under the mattress, in a pant pocket, or in a cookie jar in the kitchen. It is a good idea to know where all the hiding spots are and to try to persuade them to put the cash in a safer location outside of the home.

On the flip side, it is crucial to also understand your loved one’s liabilities. Know how much money is going out the door on a monthly basis by examining items such as mortgages, auto loans, utilities, food, credit card debt, and donations. Credit card statements are especially helpful when investigating cash flow and payment methods. Older individuals often resort to credit cards when cash becomes tight. There may be outstanding debt accumulating at an outrageous interest rate. Try to eliminate this debt as quickly as possible by seeking out options with much lower rates.

Scams

Unfortunately, in today’s society there are many people who prey on older individuals. Your loved one may be informed of winning a million dollars, but in order to claim the price they must send a check for a certain amount of money to claim the prize. Another scam is to pose as a utility worker and steal valuables from their home. Others will pose as charitable organizations and ask your loved ones for donations.

Health Care

Be familiar with the type of medical coverage your loved one has and if it is sufficient for their needs. It also helps to research other services that may be available, such as veteran benefits, medical, and supplemental coverage. Know the prescription drugs currently being taken and the specific ailments they are treating and file contact information for all their doctors.

Wills

It is crucial that your loved one have an updated will. People have a tendency to have a will drafted early on in life and never update the document. A beneficiary may have died or someone you would have liked to have as a beneficiary may have been born. Do they have a living will? What are their wishes if they become incapacitated? Is a durable or health power of attorney needed so that someone else can be in control of their assets should they become unable to take care of it themselves?

Verify that all investment accounts, where possible, have current updated beneficiaries and contingent beneficiaries assigned. This can aid in avoiding probate expenses and create a smooth transition of assets.

Housing Needs

People generally, are adverse to change. Your loved one may have lived in their home for many years and would be devastated should they have to sell their home or lose their independence. Homes with multiple steps, rooms to maintain, or high utility bills may become a burden. It may make sense to sell this asset and move to a more practical living space. Though this is a difficult decision to make, it may be for the best. It may make sense to move to a complex with other seniors in similar situations with assisted care available if needed or even a patio home closer to family members. The move does not have to mean a loss of independence.

Signs

Be aware of the warning signs. There are many signals that can tell you that your loved one needs help. Look for poor personal hygiene, neglected property, dramatic weight loss, difficulty walking, or loss of memory.

The most important factors when caring for an aging loved one are love, patience, and communication. Communication is critical when discussing these subjects with your loved one to be sure their needs and wants are satisfied. You are not alone. There are many services available to aid you and your family in providing proper care. Everyone is going to grow old, but you don’t have to grow old alone.