{"id":284714,"date":"2021-06-26T18:30:00","date_gmt":"2021-06-26T15:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/outside-the-box-how-to-help-your-parents-organize-their-finances\/"},"modified":"2021-06-26T18:30:00","modified_gmt":"2021-06-26T15:30:00","slug":"outside-the-box-how-to-help-your-parents-organize-their-finances","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/outside-the-box-how-to-help-your-parents-organize-their-finances\/","title":{"rendered":"#Outside the Box: How to help your parents organize their finances"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ca8e8b2929\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ca8e8b2929\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-how-to-help-your-parents-organize-their-finances\/#Preparation_can_ease_the_transition_from_one_life_stage_to_another\" >Preparation can ease the transition from one life stage to another<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-how-to-help-your-parents-organize-their-finances\/#Howard_Rohleder\" >Howard Rohleder<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Outside the Box: How to help your parents organize their finances<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Preparation_can_ease_the_transition_from_one_life_stage_to_another\"><\/span>\n  Preparation can ease the transition from one life stage to another<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000313269\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000313269\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Like many baby boomers, my wife and I have watched our parents go from total independence to assisted living to death. We\u2019ve been thankful that, at key moments, they made the difficult decisions themselves, without our prompting. These decisions included when to give up the family home in favor of moving to a continuing care retirement community, when to give up their car and driver\u2019s license, and when to move to assisted living.<\/p>\n<p> Read: Talk to your parents about their retirement plans sooner rather than later<\/p>\n<div class=\"paywall\">\n       Our parents were organized and realistic people who trusted us to act for them in increasingly significant ways as they moved from one stage to the next. Because of their recognition of what they could and couldn\u2019t do, they were able to ease these transitions. <\/p>\n<p>Below are five categories of steps they took, sometimes with our help. These steps protected their assets while they were alive and ensured that their assets were all accounted for after they died. Also, their actions ensured that, after their death, complications and potential family squabbles were minimized.<\/p>\n<p>They each put in place key estate planning documents: a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/will\/\" class=\"icon none\">will<\/a>, a revocable\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/revocable-living-trusts\/\" class=\"icon none\">living trust<\/a>\u00a0with one of us as trustee, a financial durable\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/durable-powers-of-attorney\/\" class=\"icon none\">power<\/a>\u00a0of attorney designating one of us to act on their behalf in business matters, and a living will and durable power of attorney for healthcare. With these as a foundation, they made sure that their accounts were titled properly, so they were held within the trust.<\/p>\n<p>A word about revocable trusts: For most people, the main purpose of these trusts is to avoid the need for assets to go through probate. I haven\u2019t been through the probate process, but attorneys say to avoid it as much as possible. I\u2019ve been through the process of closing three parents\u2019 estates with a trust in place and it went very smoothly. The counterargument: It costs something to put the trust in place and it can be challenging to retitle all assets, so they\u2019re the property of the trust, or to designate the trust as beneficiary of insurance plans. Banks, in particular, can be a hassle to work with. Making it work requires a degree of organization and persistence.<\/p>\n<p>What follows is a to-do list to review at each major transition point. Many of the steps below should be started when parents are fully independent. If they haven\u2019t been addressed by the time the parents enter assisted living or the equivalent in-home care, the clock is ticking and it\u2019s time to get them done.<\/p>\n<p><strong>Ready to get to work? First, there\u2019s the asset inventory:<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      This starts with a list of all assets, how they\u2019re titled and where the records are kept. For example, where is the deed to the house and how is the home\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/titling\/\" class=\"icon none\">titled<\/a>?<\/p>\n<\/li>\n<li>\n      Think broadly. Yes, a brokerage account is an asset. But so, too, are streams of monthly pension and annuity payments, as well as the benefits provided by <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security, Medicare and employer-sponsored insurance plans.<\/p>\n<\/li>\n<li>\n      Know if there\u2019s a safe-deposit box and what it contains. Have an adult child listed, so he or she can access the box. As the parents age, consider closing the safe-deposit box if other arrangements can be made for its contents. After my father-in-law died, we opened the safe-deposit box and found a book of leftover <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a>er\u2019s checks. My wife\u2019s parents hadn\u2019t traveled in years. Fortunately, the banker accepted my wife\u2019s signature as executor, so the money could be deposited into her mother\u2019s account.<\/p>\n<\/li>\n<li>\n      How are the cars titled? A transfer-on-death title will keep them out of probate. Some states allow the transfer of title to a spouse by simply showing the death certificate.<\/p>\n<\/li>\n<li>\n      If the parents have a locked safe or filing cabinet, know where the key is or what the combination is.<\/p>\n<\/li>\n<li>\n      Know where to find passwords to access online accounts.<\/p>\n<\/li>\n<li>\n      Know who their insurance agent is for all types of insurance. They\u2019ll need\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/renters-insurance\/\" class=\"icon none\">renter\u2019s<\/a>\u00a0insurance if they move from a home to a retirement apartment or assisted living.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Second, there\u2019s the inventory of liabilities:<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      Prepare a list of all debts, including the amounts owed and the payment schedule.<\/p>\n<\/li>\n<li>\n      If your parents are struggling to stay on top of their finances, monitor payments to make sure they\u2019re being made on time.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Third, investigate what steps need to be taken so you can act on your parents\u2019 behalf:<\/strong><\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<ul class=\"articleList\">\n<li>\n      Review how bank and investment accounts are titled, including whether a child can be designated to transact business either as a joint owner or without being a joint owner. My wife\u2019s father had her name added to bank and investment accounts when it became obvious that her mother wouldn\u2019t be able to transact business if he died. After his death, this precautionary step proved invaluable.<\/p>\n<\/li>\n<li>\n      Get designated so you can transact business with Social Security.\u00a0There are different levels of designation based on parents\u2019 needs. My wife was designated to be able to do everything for her mother, including receiving her direct deposit, because her mother was deemed incompetent.<\/p>\n<\/li>\n<li>\n      Ditto for traditional Medicare, including any Medigap or Part D drug plans, or\u2014if they\u2019ve gone that route\u2014their Medicare Advantage plan. Consider whether a drug discount card such as\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.goodrx.com\/\" class=\"icon none\">GoodRx<\/a>\u00a0offers better pricing than a Part D plan.<\/p>\n<\/li>\n<li>\n      Know where important papers are kept, including birth certificates, death certificates, marriage certificates, Social Security cards, passports, divorce decrees and adoption papers.<\/p>\n<\/li>\n<li>\n      Get designated to discuss employee benefits with former employers, and to transact business on pension and health insurance matters.<\/p>\n<\/li>\n<li>\n      Get named on\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.hhs.gov\/sites\/default\/files\/ocr\/privacy\/hipaa\/understanding\/consumers\/sharing-family-friends.pdf\" class=\"icon none\">HIPAA<\/a>\u00a0forms filed with all doctors and hospitals, so you can discuss your parents\u2019 medical issues. To be safe, have your attorney prepare a blanket document in case a particular provider doesn\u2019t ask for one or loses it.<\/p>\n<\/li>\n<li>\n      Each provider needs copies of the living will and durable power of attorney for healthcare. Make sure all siblings are on the same page about the parents\u2019 wishes, as outlined in the living will.<\/p>\n<\/li>\n<li>\n      We eventually <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied for credit cards in our name that we used to purchase our parents\u2019 necessities. For example, when using a mail order pharmacy, a credit card is handy. The credit card bills made it easy to track our parents\u2019 expenses.<\/p>\n<\/li>\n<li>\n      If you\u2019re managing your parents\u2019 bills, have all business mail routed to your home address. This avoids lost mail or unnecessary worrying on the part of the parent. After she entered assisted living, I received all my mother\u2019s mail, except greeting cards and letters from friends and family.<\/p>\n<\/li>\n<li>\n      When your parents are no longer driving, surrender their driver\u2019s license and get a state identification card. In Ohio, where we live, you need either a driver\u2019s license or state ID to file your state income tax return.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Fourth, take steps to protect your parents\u2019 assets:<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      Cancel any unneeded credit or charge cards. What cards are lingering in their wallets that haven\u2019t been used in years?<\/p>\n<\/li>\n<li>\n      If there\u2019s no need for new credit, contact the credit bureaus to\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/freezing-your-credit\/\" class=\"icon none\">freeze<\/a>\u00a0their credit. This needs to be done individually for each person with the three major credit credit-rating firms. This reduces the risk of\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/identity-theft\/\" class=\"icon none\">identity theft<\/a>\u00a0and scams before and after death.<\/p>\n<\/li>\n<li>\n      Review all automatic deductions from your parents\u2019 bank accounts to make sure they\u2019re all still relevant.<\/p>\n<\/li>\n<li>\n      If the parents are still managing their own accounts, consider getting electronic access to checking and credit card accounts, so you can monitor that they aren\u2019t getting scammed.<\/p>\n<\/li>\n<li>\n      If you\u2019re paying their bills and managing their checking account, set up a method to track the flow of funds. I used Quicken, which made it easy to document how money was being spent.<\/p>\n<\/li>\n<li>\n      Minimize who sees their Social Security number. Almost every patient information form for doctor\u2019s offices or healthcare facilities asks for it. None of them need it. Leave it blank.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Finally, make sure you\u2019re prepared for the period after your parents\u2019 death:<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      Know their expectations for funeral arrangements. Also, know who to call and where the records are kept for any prearrangements. Make sure all family members are on the same page. An attorney can prepare a document to designate who is responsible for funeral arrangements, what those arrangements should be and how they\u2019re to be paid for.<\/p>\n<\/li>\n<li>\n      Review beneficiary\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/money-guide\/beneficiary-designations\/\" class=\"icon none\">designations<\/a>\u00a0for all employer benefits, retirement accounts and life insurance. Review them again after the first parent dies.<\/p>\n<\/li>\n<li>\n      My wife\u2019s father took us to appointments with their lawyer and financial adviser for the sole purpose of meeting them in advance of needing them. This smoothed the way when we had to go alone.<\/p>\n<\/li>\n<li>\n      If there are multiple heirs, make a list of sentimental family items and who is to receive them. Better yet, distribute them as part of any downsizing.<\/p>\n<\/li>\n<\/ul>\n<p><em>This column originally appeared in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/humbledollar.com\/\" class=\"icon none\">Humble Dollar<\/a> and was republished with permission<\/em>.<\/p>\n<p><em>Howard Rohleder, a former chief executive of a community hospital, retired early after more than 30 years in hospital administration. In retirement, he\u2019s served on several nonprofit boards. In May 1994, he was featured\u2014along with five others\u2014on the cover of Kiplinger\u2019s Personal Finance for an article titled \u201cSecrets of My Investment Success.\u201d<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Howard Rohleder\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Howard_Rohleder\"><\/span>Howard Rohleder<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-74C7-B5DE3C36F037%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Outside the Box: How to help your parents organize their finances&#8221; Preparation can ease the transition from one life stage to another Like many baby boomers, my wife and I have watched our parents go from total independence to assisted living to death. We\u2019ve been thankful that, at key moments, they made the difficult decisions&#8230;<\/p>\n","protected":false},"author":1,"featured_media":284715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-284714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/284714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=284714"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/284714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/284715"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=284714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=284714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=284714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}