The Complete Guide to Managing Your Parents' Finances When They Cannot: A Step-by-step Plan to Protect Their Assets, Limit Taxes, and Ensure Their Wishes Are Fulfilled

Every year, millions of Americans transfer their finances to their children or other family members because they reach a point at which they can no longer manage them alone. More than $95 million in 2006 alone was lost due to confusion in transferring these finances and the elderly are the ones who end up suffering. For those who are about to start managing the finances of their parents, it is important to know exactly how to protect their assets, manage their taxes, and live up to their wishes. This book has been written to do just that, providing a comprehensive walkthrough of what you can expect and how to successfully handle your parents finances. To start, you must learn the basics of managing money that is not your own. You will be provided with a step-by-step chapter on how to keep track of funds, maintain the same accounting methods your parents have used for decades, and keep everything organized and separate from your own. You will learn how to evaluate sources of income including how to receive and manage Social Security, 401(k), and other retirement plans as payments are made. Additionally, you will learn how to balance their expenses, including a budgeting sheet to help you maintain the same level of expense they expect. You will learn how to budget accordingly, depending on where your parents are living and what their medical expenses might be. A chapter on insurance and medical coverage is included to help you understand how much money you can expect to set aside for these expenses and how much should be covered by programs such as Medicaid. Learn how to maintain housing for your parents as well, whether they are in assisted living or staying with you. A guide on how to talk to your parents about fraud and keep them away from potentially dangerous opportunities will make it easier for you to keep a handle on their finances without taking away their freedom. Dozens of men and women who have gone through this same situation, and also professional finance managers, have added their expertise to this book, providing firsthand accounts of how they were able to manage their own parents accounts and what you can expect. You will learn the difference in tax laws for the retired and what you will be required and not required to pay as a result of their age. It can be daunting when you first take control of your parents finances, but with this book in your hands, you should be able to quickly and efficiently take the reins and maintain the quality of life they have grown accustomed to.

Some 60 years ago, a major demographic change began in America as 84 million Americans were born between the years 1946 and 1964. After World War II, the troops returned home and rushed to make up for lost time by getting married and starting families. This birthrate explosion was so dramatic that demographers called the event The Baby Boom. Longevity is the second cause for demographic change, as many more people are living into their 80s and 90s. Boomers look forward to a long life, but meanwhile, their parents are also living longer. Demographers and sociologists have published many studies on this population explosion, including its effects on the U.S. economy and the personal finances of that generation. In 2009, there were about 75 million Boomers, ranging in age from 45 to 63 years old. They currently make up about 29 percent of the U.S. population. Many are retired or planning to retire soon, but are caught between their desires and the needs of their aging parents. They now face a host of complex needs, ranging from managing their retirement accounts to estate planning, tax reporting, aging, and end-of-life issues for both themselves and their parents. It is hard for them not to panic when considering what they face, especially when realizing that so few have saved as much as they may want or need for the future. According to the 2007 Retirement Confidence Survey by the Employee Benefits Research Institute, 46 percent of baby boomers have saved less than $50,000 for retirement. With their own financial security in question, the need to take over their parents financial life, especially if it happens suddenly, can be extremely stressful. However, if approached one step at a time, they can get a handle on what needs to be done. More than ever, people need help dealing with these major life issues, and educating themselves about their parents finances is critical. The Complete Guide to Managing Your Parents Finances When They Cannot is a straightforward and well-organized resource that speaks to the diverse demands of family finances in today s economy. It is an indispensable guide that provides a basic primer in personal finance for those who will be involved in their parents financial lives. It is well organized: You can read it beginning to end, or jump straight to the section you need to consult immediately. In order to be a financial caregiver, you need to know how to deal with legal and financial paperwork; government agencies and regulations; a host of insurance, investment, and estate-planning issues; and the inevitable emotional and psychological issues that arise whenever money and family mix. The Complete Guide to Managing Your Parents Finances When They Cannot covers all of these topics and more. This comprehensive guide supplies the knowledge and confidence you need for the many hurdles ahead. It will help you decide who should manage your parents money; how to communicate with siblings and caregivers; how to manage your parents stocks, bonds, real estate, and other investments; how to deal with health insurance, Medicaid, and other insurance issues; and how to protect your parents from elder fraud. It covers every eventuality, including insolvency, in capacity and, eventually, death. Whether you are a Boomer yourself or the child of a Boomer, this book will help guide you through many of the issues you may encounter when thinking about your parents financial needs. It could mean the difference between boom and bust for you and your parents. I hope you find it as valuable a resource as I did. --Kenneth Ford