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This article is pretty good- found it this morning- and we have worked with the folks at Curry-Poole Group in the past. Congrats to you all!

Original article posted at:

http://www.delawareonline.com/article/20090216/BUSINESS/902160305/1003

Taking the reins from aging parents

It falls to children to be aware of and help with their folks’ financial affairs

By ERIC RUTH
The News Journal

They picked you up when you fell. They paid your way, prepared your meals. They guided you by the hand through life’s perils.

Now, it may be your turn to keep a protective eye on mom and dad as they reach the age where finances become a burdensome and dangerous thing for them to tend.

For the adult children of elderly couples, financial assistance may be as simple as making sure their monthly bills get paid. Or it could be as complicated as assuming complete control of their finances.

Either way, proactive steps can avoid expensive consequences, safeguard potential inheritance, and prevent the possibility of spending many days in court, financial advisers and attorneys say. “Really, the important thing is to start a dialogue about money and their future” said Washington, D.C., author and money coach Olivia Mellan.

“I think all kids should ask their parents if they have the proper legal documents in place,” said Jerry Poole, partner in Curry Poole Group, a Wilmington financial planning firm.

The options for providing “financial care” for parents are plentiful, but sometimes perilous. One of the most critical hurdles is the first — it’s vital to start the process early, and that can mean initiating a tough conversation. Parents are prone to resisting help from children or embarrassed to seek it, experts said.

“It’s very tricky to approach elderly parents,” said Holly Chappell, attorney with the Bassett, Brosius & Dawson financial planning and investment firm near Wilmington. “They may not be aware that they’re slipping. It’s a difficult subject to broach.”

The older they grow, the more likely that help will be needed — and accepted — Poole said. “By the time they hit 70, 75, some of them are getting tired of taking care of matters,” he said. “They don’t want to make decisions anymore.”

The most critical concern is being prepared for death or an incapacitating condition, experts said. Three minimum legal steps should be put in place with the help of an attorney and kept up-to-date — a will, a living will (also known as a “medical directive”), and durable power of attorney.

In some cases, it also helps to have a child named successor trustee, or have the parents put specific assets into a “managed account” that can be overseen by a trusted portfolio adviser.

Power of attorney gives children the legal right to manage the parents’ assets for them. Without it, there’s really no way to protect their money if they cannot do it for themselves. Power of attorney can be effective immediately, or it can be a “durable springing power of attorney,” which starts only after the parent becomes disabled or incompetent.

“Sad to say, it often comes up too late,” Chappell said. “They wait a little bit too long.”

“I would also consider maybe having some joint accounts with children so they can help write bills for parents should they be unwilling or unable too,” said Frederick J. Dawson, executive vice president of Bassett, Brosius & Dawson, who cautioned that such an approach works only when the parent has the utmost trust and confidence in the children.

An insurance policy covering long-term care is also worth looking into, so long as it’s purchased before it’s needed. “You want to get it at a time when you can get it at a lower rate,” said Kathy Hyde, program manager of elder services with the Family & Workplace Connection.

Hyde also said children should be aware of the many assistance programs available to their parents. “You really need to take some time with the older adult to find the kind of services that might be readily available to them,” she said. “It can be frustrating sometimes.”

Financial alternatives such as reverse mortgages need to be approached with caution, experts agreed. “You really need to make sure that you’re asking all the questions, reading all the paperwork,” Hyde said.

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