Tips for emergencies, aging
Perhaps your parents are getting older and need help paying their bills. Or your life changes suddenly with a spouse in a debilitating car accident or suffering a stroke. Whether this financial transition is imminent or somewhere in the unknown future, here are a few tips to consider.
The first step is to understand what legal documents are in place — is there a financial power of attorney? This important document names someone (hopefully you!) to act on your loved one’s behalf for such things as paying bills, signing tax returns and accessing bank and investment accounts. Arguably this document is more important than a will, and avoids the expensive proposition of going to court to establish a conservatorship.
As a case in point, a client whose husband had an incapacitating stroke could not immediately access his IRA account for living expenses because she did not have a power of attorney. It created a lengthy, costly delay while a conservatorship was obtained.
Also, know where bank and investment accounts are located, including 401(k)s and IRAs. Look for insurance policies for life, home, auto, disability and long-term care and make sure none are in danger of lapsing for non-payment of premium. Locate real property titles and car titles.
And it never hurts to know where birth certificates, marriage certificates and military records are located, as well as safety deposit boxes and who are authorized signers.
When the day comes that you take over as financial caregiver, review recent bank statements to see which bills are being paid by check as well as auto drafted, so no important payments are inadvertently missed. Review a recent tax return to understand all sources of income.
If you see financial caregiving in your future, take some time to ask questions and understand your relative’s financial wishes.
Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC (865-622-2162, admin@marshpros.com/, www.marshwealth.com), an independent investment advisor registered with the state of Tennessee. Yvonne Marsh is an Investment Advisor Representative of MWM in the state of Tennessee. Marsh Professional Group, LLC is a TN registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and their investment advisory fees, see the firm’s Form ADV on file with the SEC at www.adviserinfo.sec.gov/.
