FINANCIAL TRANSPARENCY

As I’ve discussed in several articles the discussion of money is a must but can also be a monster rearing its ugly head.   We’ve discussed having  Powers of Attorney in place for our elderly loved ones.  Most states require  one for finance and one for medical — two different trusted representatives should be chosen.  This allows for shared responsibility and shared communication.

Although the trusted loved one is normally fine and nothing happens, it can be a slippery slope which is why I recommend any financial moves to be as transparent as possible and shared among the siblings or trusted loved ones. The vast majority of family members rarely swindle or take advantage of their parents or elderly loved ones but it does happen and the idea of unrestricted funds can be a temptation.  This is why we recommend that there be an “informal transparency” to protect your elderly loved one and you.

Following is one system to implement – one trusted representative is a signatory on the elderly loved one’s checking accounts and a second trusted representative has access to it (i.e. – given the user name and ID).  When a separate account is created to pay for care, we suggest two trusted representatives on the account.

The other pitfall are the family members, friends and care takers who will try to manipulate your elderly loved one into private gifts, be it through money, credit card purchases, a car for their grandchild (we’ve seen this) or simply write them into the will.  Again, this is why financial transparency is a must.  If the monitoring is spread among many it is much more difficult for one to have undue influence.

The elderly community is rife with stories of hired “trusted” caretakers who steal little things — trinkets, jewelry, food and petty cash.  (See my column on hiring and monitoring Caretakers).  Again, anything valuable should be removed from the house and gifted to the different loved ones and/or trusted representatives.  If the family doesn’t agree we suggest outside assistance in the form of attorneys and psychiatrists.  I always hesitate to use either because  . . . they cost money!