How To Be A Good Financial Assistant For Your Parents With Alzheimer's

Taking care of a parent with Alzheimer's goes beyond meeting their physical and emotional needs; it also involves managing their finances to secure their well-being. As Alzheimer's advances, your parents might struggle with tasks like managing bills, accounts, or investments. This is where you can step in as a financial assistant to help protect their financial future.

In this guide, we’ll discover practical steps on how to be a responsible financial assistant for your parents with Alzheimer’s, ensuring that their money is managed properly, their bills are paid, and their assets are protected.

Understand Your Parents' Financial Situation

Before stepping into the role of a financial assistant, it’s important to have a clear understanding of your parent's financial situation. This involves collecting important financial documents (bank statements, retirement accounts, property deeds, etc.), listing their income sources (Social Security, pensions, investment dividends), understanding their liabilities (loans, mortgages, credit card debt), and gathering details about insurance policies, taxes, and investments.

Start by organizing their financial documents and accounts into a simple system that you can easily access and manage. Having everything documented helps you stay organized and prepared for the financial challenges ahead.

Obtain Legal Authority

As your parents' cognitive abilities decline, there may come a time when they are no longer able to make financial decisions on their own. To assist them legally, it’s important to have the right authority in place. This can involve:

Power of Attorney (POA)

A POA allows you to make financial decisions on your parent’s behalf. You can opt for a durable power of attorney, which remains in effect even if they become incapacitated.

Guardianship/Conservatorship

If your parents haven't set up a POA and are already unable to make sound decisions, you might need to seek guardianship or conservatorship through the courts.

It's important to collaborate with an elder law attorney who specializes in Alzheimer's or dementia cases to follow the proper legal procedures.

Set Up a Budget and Track Expenses

After gaining a clear understanding of your parent's finances and legal authority, the next step is to set up a budget for them. A budget helps manage their income and allows them to cover daily expenses, medical costs, and any future long-term care needs.

Create a monthly budget: Include their living expenses, utilities, groceries, and healthcare costs.
Track their expenses: Consistently keep an eye on their spending to make sure bills are paid promptly and no unauthorized charges appear on their accounts.
Set reminders: Set up automatic payments for regular bills and maintain a schedule for non-automated payments like medical co-pays or taxes.

It’s essential to keep detailed records of all transactions in case of disputes or for tax purposes.

Manage Investments and Assets

Overseeing investments and assets is a key part of being a financial assistant. Whether your parents have a simple savings account or a more diverse portfolio, it's important to keep their money secure and aligned with their best interests.

Monitor investments: Regularly review investment accounts to make sure they're performing well and meet your parents’ financial goals. If needed, consult a financial advisor who specializes in elder care finances.
Simplify their accounts: Consolidate multiple accounts, if possible, to make tracking easier. Consider moving assets into low-risk options that offer stability and less volatility.
Protect their assets: Ensure their assets are safe from fraud or elder abuse. If you notice any suspicious activity or unsolicited calls, act swiftly to stop it.

Communicate Openly with Your Parents

While you may be handling the bulk of financial responsibilities, it’s important to keep your parents informed and involved to the extent that their condition allows. Being transparent and considerate can reduce feelings of helplessness and maintain trust. Here’s how to foster communication:

Have regular conversations: Update them on their financial situation and decisions you’re making on their behalf.
Respect their wishes: As much as possible, align your financial decisions with their preferences and values.
Involve siblings or family: If you have siblings, ensure they are aware of the financial decisions being made to avoid misunderstandings or disputes.

Plan for Long-Term Care

Alzheimer’s is a progressive condition, and over time, your parents may need more intensive care. Early planning for long-term care helps make sure their financial resources will be sufficient to cover their future needs.

Explore care options: Consider in-home care, assisted living, or nursing homes, depending on their health and financial situation. Some living facilities also have cheaper options due to programs such as the Military Veterans Program, so be sure to clarify.
Understand insurance coverage: Review their health insurance, Medicare, or Medicaid coverage to understand what long-term care services are included.
Budget for future expenses: Include anticipated long-term care costs in their financial plan to avoid shortfalls later.

Protect Their Finances from Scams

Older adults, particularly those with cognitive impairments, are at high risk for financial scams. As a financial assistant, it’s vital to protect your parents with Alzheimer’s from falling victim to fraud.

Sign them up for the National Do Not Call Registry: This helps reduce unsolicited phone calls.
Monitor accounts closely: Regularly check bank and credit card statements for any suspicious transactions.
Educate them: Gently remind your parents not to give personal or financial information over the phone or to unfamiliar sources.

Maintaining Financial Security for Your Parents with Alzheimer's

Taking on the role of a financial assistant for parents with Alzheimer’s is demanding but necessary to secure their well-being. By organizing their finances, obtaining legal authority, managing budgets, overseeing investments, and protecting them from scams, you can help safeguard their financial future. Open communication and careful planning will help them live comfortably and safely during this challenging time.

In our retirement community, we understand the complexities involved in caring for loved ones with Alzheimer's. We provide a supportive environment where your parents can receive personalized care, including memory care services tailored to their needs. Our team is dedicated to offering the peace of mind you need when it comes to managing their well-being. Contact us today to learn more about how we can support you and your family through this journey.