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‘A Giant Puzzle’
By the time Bob Diehl’s dad died, the retired grocer had consolidated all of his financial records in one tomato shipping box.
“Dad knew his sons didn’t live near him, and he decided that a present to the one of us tagged with putting his estate in order would be to hand-deliver everything in one box,” recalled Diehl, a retired Richmond editor. “I didn’t have to hunt for anything.”
I want to be just like Bob’s dad.
A recent encounter with someone else’s records has prompted me to get my stuff even more “ready-to-go.” I know I can; I organized my relative’s records.
DISORGANIZED RECORDS MEAN DOUBLE TROUBLE
Here’s what the experts say: If you have papers that aren’t easily understood by your spouse, heirs or tax adviser, you’re inviting trouble when something happens.
Note that “when.” At some point, you’ll be sick, forgetful or dead and unable to find bills or essential documents.
But many folks don’t want to air finances with children or kin. Sometimes for good reason: Their relatives are — what’s a nice way to say this? — unreliable. Plus, seniors understandably want to maintain independence, or an illusion of it, even when competence declines.
People of any age may be undereducated about finances and filing, muddling along until disability upends whatever system they’ve contrived. Some aren’t interested and never have been.
Usually it’s an adult child who discovers that a parent needs help, said Andrea Lilly, of NET 30 Inc., a bookkeeping and bill-paying service.
“What I find with some of our seniors who are a little older is that they are embarrassed that they need help. But it’s smart and shows you’re in control and competent if you have someone trustworthy to help you so things don’t fall through the cracks,” she said.
STRAIGHTENING THE CHAOS
Where to start?
“It’s a giant puzzle. You have to find all the pieces and put them together into a big picture,” said Ellen S. Hardy, founder of Financial Aides, a personal financial management company. “If you just don’t know what assets they have, start by looking at the most recent tax return.”
Examine mail, checkbook registers, and paid and unpaid bills, she continued.
This may become a scavenger hunt.
Check odd places — bills mixed with clothes in grocery bags, for example, or IRS notices in the laundry room. You get the idea.
Sort documents in labeled files in a hanging file box. Be alert for important unpaid bills such as utilities and long-term care insurance.
“Once you think you’ve found everything, do an income and expenses statement on a piece of paper,” Hardy said. Set up a budget and a simple filing system.
For those who can manage, an accordion file for incoming money-related mail is a convenient depository, she said.
To make sure bills and receipts are handled safely, name someone to hold the power of attorney.
DON’T FORGET THE LEGAL SIDE
Financial adviser H.W. “Bud” Minor cautions seniors and those having their powers of attorney to be sure to get professional help so estate planning and related legal documents are current. Investments should be suitable for the senior’s age, income, expenses and health status.
“Everything should be prudent — what a normal person would do, nothing out of the ordinary,” he said.
Typically, senior clients or their children hire professionals to manage routine money matters, often because they don’t know how or don’t have time.
But an organized person with the power of attorney also can learn how to straighten records, get bills paid automatically and maintain key papers.
“If you’re getting older, it’s important to find a person who you really trust, show them what you’re doing, and set up a routine for handling all finances and other estate planning tools. The point is, they ought to acquaint somebody long before there’s a need,” Hardy said.
Bob Diehl’s dad, Robert, got it right.
“I hope I can do half the job he did,” Bob said.
So do I.
Contact Betty Booker, a retired Richmond Times-Dispatch reporter/columnist, at
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