Yang Law Offices represent a diverse group of clients for all their estate planning needs. To protect your future and that of your loved ones and assets, we work diligently in matters of wills, trusts, powers of attorney, advance medical directives, and more. We encourage you to call our office to learn how we can help you secure your future.
Practical Tips for Helping Your Senior Loved Ones Manage Finances
Older adults are at higher risk for declining memory and other cognitive issues, making financial management more challenging than it is for younger folk. What’s more, seniors are often the target of financial scams and other cybercrime.
If your loved ones are progressing in age and losing the ability to effectively manage their money, you can help them right the ship and stay on a solid footing. These tips will get you off to a strong start!
Identify the Signs
If you want to help your senior loved ones, the first step is to learn how to recognize signs that they can no longer manage their finances. For example, if you notice them struggling with memory issues or they’ve been making strange purchases, it might indicate they need assistance. Blurring vision and other physical issues can also signify a problem.
Go Through the Budget
It’s also a good idea to get the big picture of your loved ones’ finances. And the best way to do that is to review their budget and make a list of their assets, debts, and investments.
How much income and expenses are they dealing with? How many fixed and variable expenses do they pay each month? Are there any costs they can eliminate or reduce to strengthen their financial position? You’ll be better equipped to help your loved ones when you have a clear vision of their finances.
Consider Selling Their Home
If you find that they are in a tight spot financially, it may be wise to consider selling their house. Homes in Los Angeles currently have a median sales price of over $900,000, so a sale could bring in a good amount of cash to address bills. Additionally, not having a house can simplify expenses.
Offer to Pay the Bills
Another practical way to help your loved ones gain financial peace and security is to take over the responsibility of paying their bills. This might require you to note all of their monthly bills and create a schedule that reminds you of due dates.
However, chances are many of their bills will be eligible for automatic payments. Besides setting up automatic bill pay with their banks and credit institutions, invest in software that automates other financial duties like tracking spending and balancing accounts.
Cybercriminals target older adults online to steal their identities and money. Social media, email, and Internet scams are rampant, and many seniors fall prey and face devastating consequences.
Learn as much as you can about prevalent scams and frauds that older adults are susceptible to. Then, talk to your loved ones and help them avoid them in the future. Also, keep a watch on their web and bank accounts for fraudulent activity.
Find an Estate Planning Attorney
An experienced estate planning attorney can provide you with guidance on how to protect and preserve your loved one’s personal and business assets, as well as outline their wishes for how those assets should be distributed upon death or incapacitation. A skilled attorney from Yang Law will work closely with your loved one to create a strategy best suited to meet their unique needs, whether it’s tax avoidance, asset protection, or managing a family trust.
Many seniors reach the stage where they can no longer manage their finances effectively. If you see the signs that your loved ones need help, consider taking steps like going through their budget, selling their home, and protecting them from scams to help them make intelligent decisions and maintain a solid foundation.