May 1, 2017

Financial caregivers, such as those with a power of attorney, trustee or a federal benefits fiduciary, play an important role in ensuring that all finances ¾ from routine to complex ¾ are managed wisely, helping their loved ones maintain the best quality of life possible.

 The following tips can help individuals understand their role as financial caregivers:

  •  Learn the rights and restrictions that apply to your role.Financial caregivers, such as those with a power of attorney, trustees, and federal benefits fiduciaries, are fiduciaries with a duty to act and make decisions on their loved one’s behalf. Learn the legal responsibilities of your assigned authority in order to better execute your role.
  • Manage money and other assets wisely. Financial caregivers may be in charge ofdaily, unexpected and future expense their loved one may incur. Especially if the beneficiary has a fixed income or limited finances, it is extremely important that caregivers minimize unnecessary costs and budget accordingly to ensure that all money is properly allocated.
  • Recognize danger signs. Seniors have become major targets for financial abuse and fraud. Make sure to stay alert to signs of scams or identity theft that may put your loved one’s assets in peril.
  • Keep careful records.When acting as a financial agent, proper documentation is not only encouraged but required. Make sure you keep well-organized financial records, including up-to date lists of assets and debts and a streamline of all financial transactions.
  • Stay informed. Monitor changes in financial status of the beneficiary and take appropriate action, as needed. Also, be sure to stay up to date on changes in the laws affecting seniors.
  • Seek professional advice. Consult a banker or other professional advisors when you’re not sure what to do.

 The Caregiver Action Network (the National Family Caregivers Association) began promoting national recognition of family caregivers in 1994. President Clinton signed the first NFC Month Presidential Proclamation in 1997 and every president since has followed suit by issuing an annual proclamation recognizing and honoring family caregivers each November.

 To learn more information about your role as a financial caregiver, visit www.caregiveraction.org.   For tips and additional resources, visit aba.com/seniors.

 

 © 2017 American Bankers Association.Reprinted with Permission.  All Rights Reserved.

 

 


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