One of the most difficult conversations a child may have with his or her parent involves discussing when it is finally time for a parent to relinquish control of his or her finances. Often, this conversation will be very difficult on the parents, causing them to feel angry, embarrassed, and belittled. A recent article discusses how to deal when it is time to have this conversation.
It is often clear to children when their parents are no longer capable of caring for their own financial well-being. The first indications are often out-of-character messes such as bills piling up or cash scattered around. It is important to let your parents know that this is a normal part of the aging process.
Unfortunately, as we age, our brain function steadily declines. According to a recent statistic released by the National Endowment for Financial Education, “almost half of all Americans who are past the age of 85 will experience some form of dementia.” This dementia becomes dangerous when our parent(s) become unable to make sound financial decisions concerning everyday matters.
If your parent has a financial power of attorney in place, you can activate that power of attorney once the provisions of that power of attorney are met. Often, the sole provision is a finding of incompetency by a medical professional. If your parent did not execute a power of attorney, you may need to put a guardianship in place in order to care for their financial well-being.
For assistance in dealing with the finances of your aging parents, contact us at (626) 696-3145.