Let’s face it, talking about money is awkward for most people and discussing your finances with your family, especially your children, can be challenging.

While it is important to guard your financial records to prevent identity theft, it is also important to authorize someone you trust to manage your financial responsibilities if you become incapacitated. Before you call a family meeting, consider how you would respond to the questions listed below:

Did you loose a bundle when the stock market crashed, how much savings to do you have left?

Do you have a pension, how much is it worth and does your spouse continue to receive any benefits after your death?

Do you have any eldercare insurance, for how much, what does it cover?

Did you pre-pay your funeral expenses?

Where do you keep all your important financial information?

Who is authorized to access your bank accounts, pay your bills or sell your property if you are incapacitated?

Does anyone have the authority to make medical decisions on your behalf?

Many people are afraid of loosing their independence as they age but the NJ Newsroom advises everyone to have “a Power of Attorney document drawn up and signed. There are no guarantees in life, so everyone should choose someone else they trust to help out when needed. Even with a POA signed, the person can handle all his or her finances as long as he or she is able. The person does not lose control over assets.”

The article, Elder care: Money Can Be a Touchy Subject for Seniors and Elders, also covered some of the problems a lack of fiscal planning can cause, including the fact that your spouse might not be able to access your bank account if the account is solely in your name. Often the solutions are simple, such as turning your bank accounts into joint accounts or designating a Power of Attorney.

Whether you would prefer your spouse, one of your adult children or a trusted friend to act as your physical and/or financial caregiver, talk to them about it as soon as possible. Make sure you both understand the responsibilities and limitations of assuming such an important role and once you both agree, attain the proper legal authorization. A difficult discussion can save a world of financial hardship and heartache for you and your family when the time comes.

If the time has come when you or a family member is no longer able to live independently, contact CalRegistry to learn about assisted living services and facilities within California.