Closed-End Funds Raise Awareness

A22 BUSINESS = WEDNESDAY, DECEMBER 18, 2008 = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; TRIBUNE

= ;

Taking over and managing an aging parent’s finances can be a difficult proce= ss

REBECCA WARREN is a certified financial planner and certified senior adviser in Mesa. She can be reached at (480) 357-8380 or by e-mail at rebecca@ warrenfinancialservices.com.

Like many difficult situations with peo= ple we love, planning to take over an older relative’s finances is best d= one in happier times, when both sides are healthy and various options can be considered. Unfortunately, ev= ents can sometimes intervene -- death or illness can make an elder’s need = for assistance a critical matter.

Once stricken, older relatives may be unable to understand questions or express their wishes in proper detail. If there is no plan, family members grasp at responsibilities -- or shirk them= -- without any idea of what the older relative would really want. <= /span>

What’s critical to understand is = that such talks should go far beyond money. They need to be discussions about independence and basic preferences for the way an individual wants to live = or die.

Want to avoid a worst-case scenario? St= art the conversation now. Here are some ideas:

Decide what’s important to talk a= bout first. Maybe this conversation isn’t just about where the will is. Ma= ybe this conversation is about you noticing that a parent is moving slower, is = more forgetful -- and maybe that’s why you want to know where the will is. Jumping into money issues first is usually a mistake. Deal with immediate health and lifestyle issues first.

In some families, having a successful financial discussion means several attempts and some frustration. Just keep starting the conversation until it catches on. It might make sense to say something like, “You’ve always been so independent, Mom. I just want you to give us the right instructions so we do exactly what you want.”

When a parent or relative is unconsciou= s or unresponsive, the younger relative is immediately in the drivers’ sea= t. That’s why it’s critical to make a list of questions for the elderly relative to answer in detail. The basics: Where important papers ar= e, how household expenses are paid, who doctors and specialists are, what medicines are being taken and whether there’s a will, an advanced directive and a funeral plan (and money or insurance proceeds to pay for it= ). In creating this list, ask yourself: “What do I need to know if this = person suddenly becomes sick or dies?”

If you don’t fully understand your relative’s financial affairs, it might make sense for you both to tal= k to an attorney or a tax or financial adviser. A qualified adviser can offer specific suggestions on critical legal documents that should be in place and ways to make sure accounts to pay medical and household bills are accessibl= e to the older person and the designated friend or relative who will hold power = of attorney.

Discuss the relative’s preferences and trigger points for various stages of heath care. Everyone always wants = to stay in their home, but have an honest discussion about how much you can do= at home as a caregiver and whether various services (home health aide, geriatr= ic care manager, assisted living) should be introduced at various stages. Talk= ing through what a parent will be able to live with at various health stages --= and putting it in writing -- will save plenty of doubt and bitterness later.

If an elderly relative becomes sick and irreversibly incapacitated, the equity in the home may be a resource to pay uncovered medical or household maintenance. Since the home is a major asset= and an emotional focal point, it’s best to get good advice and spell out specifically what the elderly relative wants done with his property and und= er what conditions.

Once you settle on a strategy, make sure all family and friends understand the plan and their assignments.

REBECCA WARREN
FOR THE TRIBUNE