Handling Your Aging Parents’ Financial Affairs Is Hard. This Book Can Help.

Core Insights - The article discusses the challenges faced by nearly 60 million Americans who provide care for adults with complex medical conditions or disabilities, often without adequate support [3][5] - Beth Pinsker's book, "My Mother's Money: A Guide to Financial Caregiving," offers practical guidance for managing the financial aspects of caregiving, drawing from her professional and personal experiences [3][4] Financial Caregiving Preparation - Future financial caregivers should prepare by ensuring that their loved ones have the necessary legal documents in place, such as healthcare proxies, HIPAA authorizations, and durable powers of attorney [4][5] - It is crucial to involve the person needing care in the process to avoid costly and time-consuming legal issues later on [4] Essential Documents - Key documents for financial caregiving include a healthcare proxy, HIPAA authorization, durable power of attorney, and estate planning documents like wills or trusts [5][6] - A "death file" should be created to contain essential documents such as birth and marriage certificates, divorce decrees, life insurance policies, and a list of financial accounts to streamline the process after a loved one's passing [5][8] Financial Management - Understanding the "burn rate," or monthly spending, is essential for caregivers to manage finances effectively [10] - Caregivers should keep meticulous records of financial transactions to ensure transparency and accountability, especially when dealing with funds that may eventually become an inheritance [11][12]