One of the most important thing life gifts us is our parents. From them comes everything—love, support, care, nourishment, and financial support. Therefore, when it is our time to give back, nothing but a big heart should come in the way. Also, times are changing, and what was a smart way of handling finances back in the day need not necessarily be a smart way of handling finances today. With digitization and modernization, the face of almost everything including finances has changed. Moreover, there’s inflation and financially low-performing markets. While our parents belonged to simpler times, handling finances in modern times can become a little taxing for them.
Considering all such things, a concise list has been given below of smart tips on how you can give back to your parents and provide financial help to them during their golden years:
Communicate with your parents
While this may not seem the easiest thing to do, it sure is necessary. You could start by telling them how you have begun to feel concerned about their future finances. This would put them at ease and comfort to discuss their finances and the steps to be taken with you. While you do not want it to seem like you’re out to get their assets, it is important to discuss things such as a will, insurance beneficiaries, and so on. It will not only save you trouble in their absence but will also empower them financially to know that they are taking the right steps for securing their finances.
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Take charge
There will come a time in your life when you would need to step in and take charge when it comes to your parents’ finances. As uncomfortable as it may seem, it has to be done. This would mean checking on unpaid bills, closing any financial backlogs that they may have, and dealing with any other financial matters that their age may not permit them to deal with. Review their credit card statements, if they own any. Check what services they don’t use and are being unnecessarily charged for. Check on their investments, if any premiums need to be paid, if there is any pending financial paperwork, etc. Now it’s your turn to do what they once did for you. So step in, and take charge.
Get the right documents in place
When we say right documents, a power of attorney is the most important document we are referring to here. Should you need to make any financial decisions for your parents, almost every and any financial institution will ask you for this document. So, make sure while your parents are still hale and hearty that you arrange for a power of attorney to be made. We say this because once your parents become old and are unable to do much, you will have to make one too many rounds of the court in order to be appointed as your parents’ guardian or conservator. Moreover, this process is not just lengthy but energy consuming as well, and it would require you to report annually to the court.
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