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What issues should I consider for my aging parent?

Updated: Jun 6, 2023

Becoming a caregiver for aging parents can be a drain emotionally and can carry financial ramifications both for parents and the caregivers. Helping our clients understand and manage the financial issues involved can make the situation a bit easier.

In this checklist, we cover a number of financial issues that our clients need to consider when faced with helping and potentially caring for aging parents, including:

  • Be sure clients examine their parents’ finances to determine if they are able to manage their own expenses. There may be sources of income available to their parents of which the parents are unaware.

  • It’s important to remind our clients to be sure they have access to their parents’ important documents such as any estate planning documents. They should have the names and contact information of any advisors their parents use such as an attorney, financial advisor, or accountant.

  • If our clients’ parents need long-term care, they will need to investigate ways to cover the cost. Medicaid planning or a reverse mortgage might be options.

  • If the estate of our client's parents is over a certain amount, then they may have an estate tax issue. It’s also essential for our clients to ensure that their parents’ beneficiary designations on insurance policies and retirement plans are up to date and that they reflect their wishes.

  • It’s important for our clients to ensure that their parents’ tax situation is in order, managing any capital gains or losses, as well as fully utilizing any deductible medical expenses.

  • Overall, it’s helpful to stress to our clients the benefit of having a handle on all of their parents’ assets, liabilities, and all related financial issues as a time may come when their parents are unable to manage their own affairs.

This is a comprehensive checklist of the types of financial issues that advisors should be discussing with their clients who are dealing with aging parents.

Taking on the role of a caregiver for aging parents can be emotionally challenging and have financial implications for both the parents and the caregiver. To alleviate some of the burdens associated with this responsibility, it's crucial to understand and manage the financial issues involved. In this blog post, we will discuss a comprehensive checklist that covers various financial considerations for individuals who find themselves in the position of caring for their aging parents. By addressing these important aspects, you can ensure a smoother caregiving experience while safeguarding the financial well-being of your loved ones.

Examining Your Parent's Finances:

The first step is to examine your parent's financial situation and determine if they are capable of managing their own expenses. Often, there are income sources available to parents that they may not be aware of. It's essential to encourage your parents to share information about their finances with you and explore potential sources of income that can support their needs.

Accessing Important Documents:

Make sure you have access to your parent's important documents, such as estate planning documents, and maintain a record of their advisors' names and contact information, including attorneys, financial advisors, and accountants. This information will be valuable in the future when you may need to consult these professionals regarding financial matters.

Planning for Long-Term Care:

If your parents require long-term care, it's crucial to begin investigating ways to cover the associated costs. Options such as Medicaid planning or reverse mortgages may be worth exploring. Additionally, if your parent's estate exceeds a certain threshold, estate tax issues should be considered in advance.

Reviewing Beneficiary Designations and Tax Situations:

Ensure that your parent's beneficiary designations on insurance policies and retirement plans are up to date and align with their wishes. It's also important to review their tax situation and consider managing capital gains or losses, as well as maximizing deductible medical expenses. Working closely with a financial advisor and accountant can help navigate these complex tax-related matters.

Understanding Asset Management and Estate Planning:

Gain a comprehensive understanding of your parent's assets, liabilities, and overall financial situation. This knowledge becomes especially critical when your parents are no longer able to manage their affairs independently. Discuss estate planning options with your parents, and ensure they have the necessary documents in place, such as general and healthcare powers of attorney and a living will.

Insurance and Digital Asset Management:

Evaluate your parent's insurance coverage, including life insurance, health insurance, and homeowners' insurance, to ensure it is adequate and up to date. Consider the need for long-term care insurance and review any associated riders or benefits. Additionally, be aware of any digital assets your parents may possess, such as social media accounts, and plan for their management and transfer to heirs.

Addressing Asset and Debt Issues:

Identify any undisclosed property, assets, or life insurance policies that need attention. Review investment and bank account titles, considering options like transfer-on-death (TOD) or payable-on-death (POD) designations to bypass probate. Consolidate accounts when appropriate to streamline management and potentially reduce costs. Address any state-specific issues, such as out-of-state property or estate tax liabilities.

Protecting Against Elder Abuse:

Take steps to reduce the risk of elder abuse, which is unfortunately prevalent in today's digital age. Consider freezing credit on the ill parent's accounts, establishing limits on credit card expenses, and involving a second person to oversee financial transactions. Remain vigilant against scams and cybercrime targeting vulnerable individuals.

Caring for aging parents involves numerous financial considerations that should not be overlooked. By proactively addressing the checklist items discussed in this blog post, you can provide better support for your parents while safeguarding their financial well-being. Remember to collaborate with professionals, such as financial advisors, and accountants.


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