How to Help an Elderly Person Plan Their Finances

If you love someone elderly, you may have tried to help them with their finances, or have considered it. If that is something you'd like to know more about, this post by Nancy Evans is useful and informative.

Whether you are busy learning how to avoid probate, or you are mowing the lawn after your parents retire, it seems like there is always something they need your help with. Planning the finances of a loved one who is elderly is an important and delicate process. They have bestowed you with a huge amount of trust and believe that you will help them. If you really want to help, it is important for you to take some time and learn the basics of elderly finance. It is very similar to normal personal finance, but there are a few things you need to keep an eye out for when you are working with an elderly person. One of the top concerns on most elderly people’s list is making sure that they do not have their estate sent to probate after their death. You can take concrete steps with them to make sure that this never happens.

How to Avoid Probate After End of Life

The money mindset that you take into your estate planning will affect what happens to it afterward. If you are helping someone plan their estate and want to help them avoid probate, make sure to do these things.

Any property that they have should be put under joint ownership. All other financial accounts should be set up so that they transfer upon death. This will keep as much out of their estate as possible after they die.

Most people will be able to avoid getting sent to probate entirely simply by creating a will. This is a simple legal document that details what you would like to have done with your belongings after you pass away. There is not a legal mechanism that supersedes a will as long as it was registered before the death of the person that it pertains to. For whatever reason, over half of all Americans still do not have a will even though it could help people to avoid so many problems after they pass away. If you do not have one already, then you can make one while you help the senior with theirs.

Sometimes people will have a particularly large estate that is difficult to keep out of probate. If you are ever lucky enough to find yourself in this kind of situation, then the best course of action that you can take is pretty simple. You should establish a living trust. This makes sure that a certain portion of your assets will be going to specific people that you have designated as recipients of the living trust. This will allow you to keep the maximum an out of assets possible outside of probate. There will still be a few things that get sent to probate, but you can avoid the majority of it from occurring.

Get Professional Guidance For Financial Matters

Seniors' finances are notoriously difficult to understand for people that are not familiar with them. That is why having a dedicated financial advisor could be the right move for you and your family to make. There is something to be said about having someone that you can rely on to call and have the answers. Just because you are receiving the help of a professional does not mean that you lose control over your assets. If at any point in time they give you advice that you do not agree with, then you do not have to take it. Most of the time, it is recommended that you listen to them because they are likely telling you that for a reason. You may not have the experience to see it from the same perspective that they are seeing things from, but it does not mean that they do not have a valid point.

Professionals are people that believe spending time dedicated to one pursuit is worth it. They have spent years accumulating the skills and knowledge they have specifically to help people like you out when they need it. Do not be afraid to go out on a limb and talk to a financial advisor. You may end up making one of the best decisions of your life. This could be the turning point between not saving for retirement and having a nice retirement account when you reach the age of 65.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

Previous Post Next Post