At the same time, the children of the older person want to know that their parent has paid the bills and that they are adequately provided for. They worry that the bills have been paid, that there is sufficient money in the account to cover the bills and that any excess funds are invested. They know that the elder person wants to keep control of their finances, but it is becoming increasingly difficult for them to do. It is even more of a worry when the children do not live in the same town as their parents.
Is there anything that can be done that will satisfy both the parents and their children? Actually, a service that is offered by many banks that have trust departments is an “agency” relationship. The agency relationship is not a trust relationship. The bank is acting as agent for the elder person, but only to have direct deposits of social security or income from other sources deposited there and to pay all of the bills for the elder person. The bank arranges for all of the bills to be sent to the bank, instead of the elder person.
Of course, there is a charge for this service, but it may well be worth it for the peace of mind that all bills are paid, all income collected and the information is organized in a report that will allow for the taxes of the parents to be done easily.
Denice Gierach is a lawyer and owner of The Gierach Law Firm in Naperville. She is a certified public accountant and has a master’s degree in management. She may be reached at deniceg@gierachlawfirm.com. For more information on Denice and The Gierach Law Firm visit Gierach Law Firm.
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