It is a quiet secret that many Baby Boomers have stepped in to participate in their aging parents’ finances. Assistance runs the full gamut from just offering advice, helping them to pay bills, or even taking their parents finances over completely. At minimum, most Boomers I know have a Power of Attorney established on their parents’ monetary accounts so finances and access to funds will continue smoothly should a parent die or become incapacitated.
This is an important subject. It deserves careful consideration and a well-conceived plan of action. Without educating themselves or gaining professional insight, Boomers can make serious mistakes when participating in their parents finances.
I have been through this myself, so I can speak from experience. Interjecting yourself into a parent’s finances takes forethought and diplomacy. it’s a sensitive subject. Most Boomers, however, will be pleasantly surprised at how receptive their parents are to discussing an offspring’s participation. Many are relieved, in fact, that their kids finally broached the subject.
It is crucial that Boomers educate themselves before bring up the subject. Fortunately, there are several excellent articles that can quickly advise you on the major issues and consequences of managing your parents finances:
- Taking Over Your Aging Parents’ Finances
- Nearly half of baby boomers manage finances for their parents, but they’re going it alone
- Baby Boomers Need to Prepare to Help Aging Parents with their Financial and Estate Planning Issues
The Bottom Line for Baby Boomers
Stepping into your aging parents finances is a touchy action. Yet it has to be done. The landscape is replete with examples of financial messes when no forethought to a smooth financial transition exists should a parent become incapacitated or die. Don’t wait. Do this NOW!