Article By: Christine Roberts – Kelly MBA/CEO
Contributing Writer

This month’s intentional conversation hits close to home y’all .
As the oldest of three and the only girl in a Caribbean family, it’s expected that I would take on the
responsibility of caring for my parents in their later years. But somehow you are never ready .. well at
least I wasn’t.
Life can change in an instant. Sudden illness can be overwhelming, especially when there were no signs
of trouble just days before.
So, this month, allow me to share what I’ve learned, in hopes that you might be better prepared than I
was.
As parents age, the responsibility of managing their finances often falls to their adult children, most
often their daughters. This process can be trying and emotionally taxing, but with proper planning and
organization, it can be navigated. Over the last 30 days I’ve gathered a few key topics worth considering
in handling parents’ finances. There are many areas to cover but here are several key areas: banking,
healthcare, living arrangements, digital access, and potential healthcare funding needs.
As I am the finance girl let’s begin with banking. It is crucial to ensure you have legal authority to
manage your parents’ finances. This often involves obtaining a Power of Attorney (POA), which grants
you the ability to handle financial transactions on their behalf. A POA can be set up through an attorney
and should be done while your parents are still mentally competent to make this decision.
Once you have the POA, it is important to consolidate accounts and streamline their banking processes.
Ensure all bank accounts, investment accounts, and bills are documented. Online banking access can
greatly simplify this task, allowing you to monitor transactions and pay bills efficiently. Set up automatic
bill payments and direct deposits where possible to minimize the risk of missed payments and
overdrafts.
Healthcare management is another critical aspect. Start by organizing all medical records and health
insurance information. Ensure you have a HIPAA (Health Insurance Portability and Accountability Act)
release form signed, which allows you to access their medical information. This form is essential for
communicating with healthcare providers about your parents’ treatment and medical needs.
It is also beneficial to have a healthcare Power of Attorney or Medical Proxy, which designates someone
to make medical decisions on their behalf if they are unable to do so. Regularly review and update these
documents to reflect any changes in their health or wishes.

Living arrangements should be addressed with sensitivity and foresight. Discussing options with your
parents before a crisis occurs can help in making informed decisions. Consider their preferences, health
status, and financial situation. Options range from aging in place with home modifications to assisted
living facilities or nursing homes.
Evaluate the cost of each option and what is covered by insurance or out-of-pocket expenses. It’s crucial
to factor in long-term care insurance if they have it, as it can significantly offset the cost of assisted living
or nursing home care.

In today’s digital age, knowing your parents’ passwords and online account information is essential.
Create a master list of passwords for their email, online banking, and any other digital accounts. Store
this information securely, using a password manager if necessary. This ensures you can access important
documents and manage accounts without unnecessary hurdles.

Understanding Medicaid benefits is vital if your parents might need them. Medicaid provides health
coverage for individuals with low income and limited resources, which can include long-term care
services. To qualify, your parents’ income and assets must fall below certain thresholds.
Begin by researching your state’s specific Medicaid requirements, as they vary. Proper planning can help
in legally and ethically structuring their assets to meet eligibility criteria without compromising their
financial security. This might involve spending down assets on allowable expenses or setting up a
Medicaid Asset Protection Trust.

Handling your parents’ finances as they age is a multifaceted responsibility that requires careful
planning, legal preparation, and compassionate communication. By addressing these areas proactively,
you can ensure your parents’ financial security and well-being while reducing stress for both them and you.