Are you concerned that your elderly loved one, neighbor, or client is struggling to organize their bills, insurance claims, and tax documents? There is a professional for that!
Daily Money Managers, like ours at Care is There, make daily financial and administrative tasks safe and simple. In this article we discuss best practices for how to set up a relationship with a Daily Money Manager.
Define Your Goals
What do you want your Daily Money Manager to provide? At Care is There, we usually begin with the following, and add goals that are specific to our new client:
- Protect funds from unauthorized use
- Provide our client with convenient access to appropriate amounts of funds
- Structure bank and credit accounts efficiently, including how those accounts will be transferred upon death
- Pay bills correctly, efficiently, and on time
- Administer insurance claims - medical, long term care, etc. - to maximize benefits
- Organize payments to private caregivers
- Gather tax documents to assist the tax preparer in filing
- Report income and spending in ways that provide transparency and peace of mind
Create the Support Team
Define the support team for your loved one or client and their roles. These may include:
- Daily Money Manager
- Care Manager / Lifestyle Coordinator
- Financial Advisor
- Tax Preparer
- Agent under financial power of attorney
Structure the Banking Relationship
This is often a good time to examine and simplify the banking structure. Are bank accounts owned by appropriate parties? Are they structured for efficient transfer upon death? Are their good controls in place to prevent unauthorized use of funds? Is there a banker who can give personalized service?
Document Authority and Permissions
In order to transact business on behalf of your loved one or client, your Daily Money Manager will need you to legally delegate at least some authority to them. Proceed cautiously here, granting only the authority necessary to accomplish your goals.
As always when appointing agents, be sure you have fully investigated the potential agents. It is wise to perform background checks and reference checks.
This is also a good time for your loved one or client to review who they have appointed as their agents under power of attorney and to make any changes.
Implement Key Controls
Your Daily Money Manager can help you implement these best practices:
- Take steps to prevent identity theft, fraud, and financial abuse
- Limit access to funds - by the Daily Money Manager and others - to the minimum necessary
- Manage information security, including passwords
- Arrange independent financial review
How Care is There can Help
Ready to hire a Daily Money Manager? Care is There can help.
Contact Care is There today for a free consultation!
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