Navigating the Process of Taking Over the Finances of Aging Parents

Taking over the financial side of aging parents can be a sensitive and challenging task, but is important to ensure an aging person receives the best future of care afforded them. Knowing and understanding what type of financial options are available can be a valuable tool to help with the transition of future care for elderly parents.

Aging considerations are different for each person and will vary when it comes to covering the costs of future care. Knowing the steps and/or resources that are available can provide assistance that provide financial support for ongoing care as needed.

Whether one is seeking financial assistance through government programs, insurance plans, retirement accounts, personal savings, etc., being proactive in the process may ease future financial stress.

(For more specific information to begin that conversation, see How to Talk to Aging Parents about Future Care.)

The Financial Side of Future Care

It can be a difficult conversation for caregivers to talk to aging parents about money and financial security. Some families may be more capable than others to cover payments in the care of their aging parents, while others may struggle to meet such needs. Knowing what financial assistance may be available can help families determine eligibility based on the level of care their parents require. 

While UDS does not provide direct financial relief, we do have reputable and reliable resources for families that may need help with financial issues or concerns. UDS also provides a variety of services for Older Adults including CAPABLE, In-Home Personal Care, Wellness Calls, Home Modifications and more. 

There may also be additional resources available for families depending on their circumstances.  These include:

• If the parent is a veteran or anyone in the family receives veteran benefits the family may be able to get help through the Veteran and Direct Care Program, based on how much assistance they are currently receiving.
• If the parent or adult is already using Medicaid or any other government benefit for healthcare needs, they may be eligible to enroll to become a paid caregiver depending on the severity of the elderly parent. More information can be found through Home and Community Based Services.
• For those not receiving government assistance, it may be worth investigating their own insurance plans and see if Long Term Care Insurance Plan is something to consider. Be sure to point out and specify that insurance premiums may rise as time goes on so weigh that into the decision.

Please note that not everyone is eligible for government aid. It is important to be honest and clear with your aging parent(s) if they are unable to attain any of the above listed assistance programs. Consider other options such as:

• State Aid: While UDS works specifically with residents in PA regarding financial assistance, it’s crucial to research the state in which a person resides to determine what that state specifically offers on top of any federal aid.
• Becoming a Signatory: If government funding is not available, some adults may want to consider the idea of becoming a signatory for their parents and creating a joint bank account in order to help cover the costs associated with furthering care.
  • More information about how to do this can be found through the bank of preference, personal financial advisors, or through the financial help team at UDS.

Having Financial Conversations with Aging Parents

The idea of no longer being capable of managing their own finances may feel like lost independence. Creating an initial foundation of trust and honesty with one’s aging parents can help with the transition should caregivers find the need to take over the management of their parent’s financial affairs.

Having financial conversations with one’s elderly parents can be a personal topic that they might not feel comfortable discussing. It’s important to be mindful of an aging parent’s consideration and incorporate that into the discussion. 

Some things to consider include:

• Explaining your concerns and intentions clearly;
• Building a foundation of trust with your aging parents with open and honest communication;
• Including them in the conversation about financial concerns; 
• Working with them to create a system to organize and manage financial documents such as setting up digital or physical folders for bills, statements, and legal documents;
• Co-managing their bank accounts, investments, and bills;
• Monitoring for any unusual transactions or financial issues that may arise;
• Recognizing that choices and options may change as the parent ages and adjust accordingly.

Taking Over Finances for Aging Parents

Deciding when it’s appropriate for children/caregivers to take over the finances of their aging parents depends on several factors, including the parents’ physical and mental health, their ability to manage their finances independently, and their willingness to relinquish control.

At some point, hard decisions may need to be made for the security and protection of an aging parent’s finances. A parent exhibiting declining mental capacity such as Alzheimer’s or dementia may indicate a parent’s inability to manage their finances effectively. Signs to look out for include forgetting to pay bills, confusion about financial matters, or making unusual financial decisions. Piling up of unpaid bills or reckless spending can create a potential financial mess if left unchecked or addressed.

If you’re unsure about the appropriateness of taking over your parents’ finances, consider seeking guidance from a financial advisor specializing in elder care or an elder law attorney who can provide advice tailored to your specific situation.

Taking Your Next Steps and Finding Help

It’s important to approach the topic of financial matters with sensitivity and respect for your parents’ autonomy. Discussing financial management with aging parents should be done with their involvement and understanding whenever possible. Ideally, decisions about taking over finances should be made collaboratively, involving input from family members and, potentially, advice from financial and legal professionals.

Nobody wants to talk about the money side, but UDS is here to provide you with resources and education to help you facilitate the process.

If you are aware that you will most likely need help with the process of managing your aging parents’ finances, doing it early will allow you enough time to situate yourself financially. 

Contacting UDS’ financial help team is a good place to start.