Caring for an elderly relative can be challenging, especially when their needs are constantly changing. However, it’s also the chance to spend quality time together during their twilight years and to thank them for the undying support and love they have shown you throughout your life.

Of course, this does not make the process any less stressful. After all, while you’ll always have the best intentions, it can be hard to know what the best course of action to take is. This is especially true when it comes to taking control of their finances or assets.

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With that in mind, here some top tips to get you started. 

Initiate difficult conversations

While your loved one may want to maintain their independence for as long as possible, it will likely become apparent when you need to take over and offer them more comprehensive support. This is especially pertinent in cases where they may be showing signs of cognitive decline or memory loss.

In these cases, the sooner you have a conversation with your loved one, the better. You can ask them about their wishes moving forward so that you can ensure that they are respected and that they access the support services they need. 

For example, you may want to look over their deeds with them so that they can discuss their wishes for who will inherit any real estate they own.

While these conversations can be difficult, especially if you do not want to feel as though you are trying to take advantage of your loved one, the sooner you have them, the better. Be sure to let your loved one know you are only asking these questions so that you can put plans in place to support them moving forward. 

Help them to put together a budget

Budgeting is key to remaining financially healthy at any age. However, it may become particularly crucial if your loved one is dealing with limited funds and needs to cover the price of healthcare support, medications and more. 

This means that you need to go over their finances and savings and put together a budget that allows them to live comfortably. Remember, this should cover the cost of: 

• Rent, mortgages or care facility fees
• Utility bills 
• Insurance fees 
• Transport fees (car/public transport)
• Medical expenses 
• Entertainment and leisure fees
• Groceries 

Find ways to help them save money

Once you’ve put together a budget for your loved one, you can provide them with practical advice on ways to save money. This means that their budget could stretch that much further each month, providing them with a greater sense of peace and security. 

For example, there are plenty of ways in which you can save money on groceries, such as by utilising discount codes and coupons, shopping locally, or even signing up for meal prep services that prevent costly food waste.

They can start cutting down on utility bills by working to become more eco-friendly, such as by remembering to turn off lights and appliances when not in use. Alternatively, you may want to encourage them to switch to a renewable energy provider, which can often go a long way when it goes toward reducing monthly expenses. 

You may also want to check whether or not they can access any support schemes in your local area. Remember, if they are over the state pension age in the UK, they can quickly apply for a free bus pass. This makes day-to-day travelling much easier, ensuring they remain mobile and active, even if they do not feel comfortable getting behind the wheel. 

Make sure their finances are accessible

While we may have grown accustomed to digital banking, this is something that elderly people may find hard to adapt to, especially if they are not the most proficient with technology to begin with. In fact, a recent study found that just 14% of those aged 85 and above use online banking tools, which leaves many of them feeling out of the loop when it comes to managing their finances.

Fortunately, there are many different ways in which you can interfere on their behalf in this regard. For example, you may wish to reach out to their bank in order to ensure they continue to receive postal communication where possible in font size/style that is easy to read. In cases where this is not possible (many banks are working toward going paperless), you could check their accounts for them and take over tasks such as bill payments on their behalf. 

Know when to take legal action

If, as mentioned above, your loved one is showing serious signs of cognitive decline, then taking legal action to formally take control of their finances may be necessary. After all, this allows you to provide them with a greater level of support and care.

In these cases, the sooner you reach out to a lawyer, the better. They will be able to talk you through the next steps, protecting not only your own best interests but those of your loved ones, too. This can be a time-consuming process, so don’t delay!

Encourage them to be wary of scams

Elderly individuals are often the target of complex scams that result in significant financial losses. In fact, a study from Age UK found that elderly individuals fall victim to scams every 40 seconds. As such, encouraging your loved ones to be aware of potential scams is key.

For example, if they spend a lot of time online, you should teach them the signs of common digital scams, such as romance scams or strangers asking for money, help and support. While this may seem obvious, it is important to remember that elderly individuals did not grow up in the age of the internet, meaning that they may not be aware of the red flags triggered by this kind of behaviour. Above all, you should encourage them to never send money over the phone online to a person they do not know. 

Final thoughts

Helping an elderly loved one to take care of their finances can be challenging, especially if this is something that you struggle with yourself. After all, you may feel as though you do not qualify as a person of authority when you’re still trying to work your way out of debt.

However, this does not mean that you cannot lend a helping hand during this time. For example, you can help your loved one put together a plan of action moving forward by developing a budget that meets their needs or finding creative ways to save. If necessary, you could help them to apply for a loan or government support. Remember, these support systems exist for a reason – so do not let them go to waste.

While this may be a sensitive topic, you should also be sure to take legal action when necessary, such as in a scenario wherein your loved one is no longer capable of managing their funds on their own. This will allow you to protect their best interests moving forward, even if they are reluctant to discuss this to begin with.

If you are still overwhelmed at the prospect of handling another person’s assets or finances, then yo may want to signpost them toward a financial advisor who can take on these duties on your behalf. Alternatively, they could provide you with guidance and support to get you started on the right track so that you feel much more confident moving forward and can give your loved one the support they need.