Your go-to checklist for managing elderly parents' finances 

Wondering when it’s time to step in and help manage your loved one’s finances? Or when to set up power of attorney for an elderly parent? This checklist can help you recognize the signs, start the conversation, and take the right steps when it’s time to take over.

When simple banking tasks like paying bills or keeping track of transactions start to feel like overwhelming chores for your parents, it may be time to step in and give them a hand.

Money management needs to stay on track, and estate plans should stay up to date, but helping loved ones with finances can be tough. It often involves tricky conversations, regular follow-ups, and navigating complicated details — which can be intimidating. By breaking it all down into clear, manageable steps, you can ease the burden for both you and your parents, making the process a lot less stressful.

1. Start the financial planning discussion early

Start talking to your aging parents about how they want you to handle their finances if you ever need to take over. Have your parents give written consent for you to talk to their bankers and financial advisors so you don’t run into issues with privacy laws.

They can also work with a lawyer to grant you power of attorney, which gives you authorization to manage your elderly parents’ assets and finances. Once written consent is given, it’s much easier to get access to the documents and information you’ll need. Talking about money with family can be emotional, so having an honest and candid conversation will show you care and help get everyone on the same page.

2. Know when it’s time to step in

You know your loved ones best, so use your best judgment and watch for subtle signs that it’s time to take a more active role.

• Keep an eye on unusual spending habits, like big or unexpected purchases.
• Look out for signs they may be falling for scams, as older adults can be targeted more often.
• Unpaid bills or rising credit card debt might mean they’re having trouble managing finances.
• Listen for mentions of money worries or complaints about finances that feel new or out of the ordinary.

3. Be mindful of emotions

Thinking about your parents getting older and needing help with money can be just as distressing for them as it is for you. Plan what you need to say ahead of time and remind your loved ones that – with your support – they can relax and enjoy their later years instead of worrying about things like elder fraud or forgetting to pay bills on time.

Reassure your parents that you don’t respect them any less, nor do you think they’re incapable of caring for themselves. From here, you can make a plan that works for both of you.

4. Gather information and get your documents in order

Managing your parents' finances can feel overwhelming, but breaking it into smaller, manageable steps will make the process much more approachable. Start by gathering all the important stuff needed to pay bills and keep finances on track. You can sit down with your parents to track everything down, and don’t hesitate to loop in their bank or financial advisor for backup. Pull this info together in one secure spot:

• Account numbers, bank statements, bills and retirement fund information
• Credit lines, mortgages, savings accounts
• Contact numbers for bankers, investors or other key financial contacts

5. Review and update all financial information

Once you’ve pulled together your parents’ information, take a good look at their legal and financial documents. Wills, trusts, powers of attorney, and healthcare directives all need to be current and reflect what your parents actually want. If you hit any snags or notice missing pieces, it’s worth chatting with a lawyer who knows elder law or estate planning.

Here are a few things to keep top of mind:

• Stay on top of bills and subscriptions to avoid anything slipping through the cracks.
• Understand their insurance plans and debts so you’re ready to manage things if needed.
• Make sure online logins and passwords are secured, but still accessible for trusted family.

By getting organized and ticking these boxes, you’ll feel more confident that everything’s in good shape when you need to step in.

6. Take preventative measures to keep things on track

Don’t wait for a bill to go unpaid or a scam to hit. Whenever possible, take preventative measures to keep their finances running smoothly.

• Automate income and payments – Work with a banker to switch any income streams, like a retirement fund or social security payments, to direct deposit into your parents’ checking account. Set up automatic bill pay to ensure regular payments happen as planned. Automating these processes will eliminate delays and the risk of misplaced checks.
• Clean up spending - Review all recurring expenses and ensure they are accurate; this is a good time to cancel any unnecessary subscriptions or services they no longer use.
• Set reminders and security alerts - Many banks also offer reminders for upcoming payments, which can be a helpful backup. For added security and convenience, consider setting up alerts for account activity, so you can monitor transactions and spot any unusual activity quickly.
• Set up power of attorney - Depending on how involved you need to be, you might also explore appointing a trusted individual, such as yourself or a financial professional, with power of attorney to help oversee their accounts and make decisions on their behalf if necessary.  

7. Set up and maintain a budget and financial plan

So you’ve got all your documents in order and developed systems to keep the bills paid. Now it’s time to think big picture about budgeting and financial planning – because at the end of the day, it’s not enough to just make sure expenses are covered. Your parents still need to maintain savings and keep their investments on track. At a minimum, they’ll need enough money to pay for their housing, food, clothing, medications and any daily assistance from a nurse or caretaker. 

And don’t skip the estate planning part. Work with an attorney to update things like wills and trusts so everything reflects your parents’ wishes. It’s not just about honoring what they want but also about avoiding unnecessary complications or taxes later on. Staying proactive, organized, and open with your parents can make managing their finances much smoother for everyone.

8. Ask for help protecting elderly parents’ finances

Managing someone else’s money on top of your own can be stressful and time-consuming, so don’t be afraid to work with a professional to keep everything streamlined and simple. That helper might be a financial advisor who knows your parents’ financial history well, or a banker who can keep you up to date on relevant changes to account balances. Even if your elderly parents’ finances are complicated, managing them doesn’t have to be.