Making
Moments
Count: Family
Financial Challenges
continued from cover
legal authority to pay their bills, maintain
their residence, complete tax returns and
review their financial investments.
If your power of attorney was established
more than two years ago, verify that it
was issued properly by today’s standards. Even though powers of attorney
never expire, some have reported having
problems with establishments that have
updated their forms. The new forms no
longer identify powers of attorney that
were named several years ago.
Your parents can name multiple powers of
attorney. But to avoid possible disputes,
make sure that you and your siblings have
your own, clearly defined responsibilities.
Also, if your parents have decided to name
a power of attorney, and it’s not you, make
a point to respect their decision – even if
you don’t agree with it. As long as a plan
is in place, you and your family are on the
right track.
3. Understand Your
Responsibilities
Being a power of attorney is a big responsibility. Not only are you empowered to
make tough decisions, your actions are
now able to be scrutinized by everybody
from the IRS to other family members.
To avoid problems, carefully track how
much money is coming in and going out
and maintain thorough records. And call
in the professionals if you feel like you’re
in over your head.
finances, legal affairs or anything else?
If so, make it a priority to talk to them
before moving any money or assets
around. You will need to know if your
parents set up a will, trusts, or anything
else over the course of their lives. This
team will not only be able to compile
the information you need, they can also
answer your technical questions, which
will make the entire process
go smoother.
6. Simplify, Simplify, Simplify
5. Compile
An Inventory
It’s not easy to manage your loved ones’
finances, but with the right approach,
plan and team of advisors, you can do
it – and do it well. Once you get your
ducks in a row, you can focus on other,
more important things – like making
every moment with your loved ones
count.
To manage anything
well you must have a clear
picture of what it is you are managing.
To that end, make it a point to compile
a complete inventory of your parents’
assets and liabilities to create a clearer
plan of action.
Once you understand your responsibilities, simplify everything. For example, if
your parents have seven or eight open
bank accounts throughout the county
or state, consolidate them into one –
and don’t stop there. From assets to
investments, consolidating these affairs will make your job easier and less
confusing as you try to track expenses.
bright idea:
Make sure everyone in your family has their financial information
organized and in one place. We have an organizer tool in the
financial resources section of our website. It’s a great place to
start. Go to www.ReaCPA.com/financial-resources and click on
“Personal Financial Records Document.”
4. Send In The Team
In the past, did your parents work with
a team of professionals to manage their
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