Medical treatment and caregiving can be costly, which makes good financial planning all the more necessary. An experienced financial planner, elder-law attorney, geriatric care specialist, or social worker can offer more specific guidance on planning or financial assistance. Because financial assistance varies widely depending on locale, it's best to seek advice from experts who live in the same area as the person receiving care, especially if you are arranging care from afar.

Organizing Finances

Sometimes organizing finances requires you to take the helm. Often, though, it's a matter of presenting options that the person you are caring for may not know of or might feel wary about. If so, proper research or professional advice can help you lobby for changes. Focus on the following.

Clean up finances. A smattering of bank accounts and far-flung retirement funds does no one good. Create a list of existing accounts. Consolidate bank accounts, and consider doing the same with investment and money management accounts. Talk with a financial adviser about investment strategies.

Consider a durable power of attorney or a joint bank account. A durable power of attorney can give a caregiver the legal authority to pay bills and oversee finances. If no durable power of attorney exists, opening a joint bank account with the person you are caring for can make bill paying easier. If you choose to use a joint account, make sure only one signature is required to avoid problems if the person you are caring for becomes incapacitated.

Streamline deposits and payments. Online payments and automatic withdrawals ease the task of tracking and paying important bills. A money manager, certified public accountant, or local bill-paying service could also handle this job for a fee. Automatic deposit of Social Security benefits and other income sidesteps the problem of misplaced checks.

Trim expenses. Small economies help, but larger ones — such as discontinuing unnecessary insurance policies, seeking discount drug options, or rolling debt from several high-interest credit cards into one payment at a lower rate — are better. Contact the local agency on aging to check on the availability of assistance in paying heating bills, property tax relief for senior homeowners, and similar programs that could trim expenses.

Share the cost. Consider asking family members to pay a portion of costs or to pay you for your services.

Look for additional income. If the person receiving care is a homeowner, he or she could establish a home equity line of credit to boost income.

Source: from Caregiver’s Handbook, Harvard Health Publications, Copyright © 2007 by President and Fellows of Harvard College. All rights reserved. Used with permission of StayWell.  Use of Content | Medical Disclaimer