It’s not easy becoming the financial caregiver for an aging parent. Often the adult children take on this role slowly over time and reluctantly. Far from being a simple job a financial caregiver must act prudently and in the best interest of the person. Mistakes and financial disaster can happen especially if you are also tending to the aging parent’s health and other needs. Horrible stories are often heard of family members, caregivers and others who financially exploited aging seniors.
It’s critical to understand the fiduciary responsibility you are assuming by becoming the financial caregiver. Frequently you will need to manage the finances even more closely than your own. Keep good records, account for all sources of income and expenses, maintain adequate insurance, timely pay all bills and taxes, and make certain all investment decisions are made wisely.