Become a Financial Representative for an Elderly or Disabled Relative

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FDIC Consumer News – Spring 2008 – Assisting Elderly Relatives With Financial Responsibilities


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For Financial Caregivers:

Helping Disabled or Elderly Relatives With Money Management, Even From Far Away


Millions of people serve as financial caregivers for ill or elderly spouses, parents, children or other loved ones. They perform services that include paying bills, handling deposits and investments, filing insurance claims and preparing taxes. Because this role can be costly and physically and emotionally exhausting, especially for a caregiver who lives far away or has the usual time-demands, FDIC Consumer News offers some suggestions.


Preventive Measures


Consider taking these steps before someone becomes ill or disabled:


Make sure the family knows where to find personal and financial documents in an emergency. These include bank, brokerage and credit card statements; original wills; insurance policies; and Social Security, Medicare and pension records.


Think about the direct deposit of pay and benefit checks into bank accounts. Direct deposit is safer and more convenient than paper checks. There are no delays in getting funds deposited, and no checks are lost or stolen in the mail or forgotten at home.


Consider automatic payment of important, recurring bills. You will have one fewer thing to worry about if you can arrange for utility bills as well as other regular commitments (such as insurance and the mortgage) to be paid electronically out of your loved one's checking account.


Try to make sure your elderly relatives are properly insured. If you have doubts about someone's insurance coverage or ability to pay for long-term care, get a second opinion from a financial planner or an insurance agent you trust.


Consider a "durable power of attorney." This is a legal document giving one or more people the authority to handle finances or other personal matters if the individual becomes mentally or physically incapacitated.


Suggest a "living will" or other instructions about future medical care. Most people should have a living will specifying the type of medical care they want or don't want if they become terminally ill and are unable to communicate their wishes.


Experts also recommend a "health care power of attorney" or "health care proxy" designating a family member or other trusted person to make decisions about medical treatment.


Living wills and health care proxies are intended to ensure that someone's wishes regarding medical care are honored, but they also can prevent unnecessary and costly procedures.


Spring 2008 | Preventative | After Illness


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 05/13/2008

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