Learn how caretakers can help aging parents manage their finances

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Caretakers of older parents have a lot to juggle. Members of the “sandwich generation” need to balance parenting young kids and caring for aging parents. And they face even more challenges with the growing threat of senior financial fraud, which costs older adults over $36 billion annually according to the Better Business Bureau – in many cases, where the victim is unaware it’s even happening.

With greater awareness and thoughtful planning, you can help your parents manage their finances. J.P. Morgan Wealth Management recently published a new white paper to help provide a guide for caretakers to help support their aging parents.

Here are a few tips to keep in mind:

Take inventory, map out goals & have a plan

If your parents are comfortable, consider taking some time to help them assess their financial situation. Where are their different financial accounts located and who has access? Have they reviewed their beneficiaries recently? Finances are incredibly personal. It’s important you are creating a safe space for your parents to discuss these topics and potential concerns with you.

Once you have a clear picture, have a conversation with your parents about their goals and figure out what’s important to them. If they don’t already have a long-term plan in place, it’s a good idea to create one. You may want to partner with a financial advisor on this, as they can help create a customized plan that is based on your parents’ unique financial situation, goals and priorities. Your parents’ goals may change as they get older, so make sure to check in on their long-term plan regularly and see if any updates are needed.

You should also consult with an attorney to help put together estate planning documents, which outline how your parents’ wishes will be carried out after they pass away or if they can’t make decisions for themselves.

Watch out for common schemes

The range of senior financial fraud schemes is broad, but understanding common tactics can help you be aware. Across the board, perpetrators will often use emotions to create a sense of urgency for seniors and try to get them to “act now.”

Some common ones include:

Investment scams can convince seniors to invest in fake opportunities by promising high returns and low risk.

Tech support scams happen when seniors get a call or message on their computer claiming it has been infected and that they can resolve it for a fee. Perpetrators can then install hardware that gives remote access to one’s devices and personal information.

Phishing scams are becoming increasingly hard to spot with today’s technology. These scams target seniors through an email, text or call. The person can claim to be from a bank or government agency and ask for personal information, financial details or passwords.

Romance scams involve perpetrators that pose as romantic partners on social media or dating websites.

Stay vigilant and be proactive

It can be scary reading about the different ways seniors’ finances are targeted. But luckily, there are things you can watch for and do to help secure your parents’ finances.

Ask your parents to consider designating a trusted contact person for their financial accounts. If your financial institution suspects a concerning transaction or behavior from your parents, they can reach out to the trusted contact to flag it. This is an easy safeguard to put in place that can help protect their accounts in potential fraud or emergency situations.

Being secure in technology use is important, too. Use strong passwords for any online accounts and be aware of what you and your parents share online, as it could be used in answers to security questions. Most financial firms also allow you to set up security alerts, so you can be aware of any suspicious transactions in real time.

Be aware of changes in your parents’ behavior that could raise concern. Watch for confusion around their finances, sudden and major changes to important documents, unusual account withdrawals or charges to bank cards. Sometimes changes in behavior can be a sign of fraud.

Remember you aren’t alone

No one should have to manage the burden of caretaking on their own. Build a support system that you can lean on as you navigate the process. This can include family members and friends, as well as professionals, such as healthcare providers, lawyers and financial advisors. Help is out there. Taking care of aging parents isn’t always easy, but you aren’t alone.

For free educational resources on planning for yourself and loved ones, visit chase.com/theknow.

Eric Richardson is a Market Director at J.P. Morgan Wealth Management. Eric oversees financial advisors in Chase branches across Utah who help clients plan and invest towards their goals.

The views, opinions, estimates and strategies expressed herein constitutes the author’s judgment based on current market conditions and are subject to change without notice, and may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan Research and should not be treated as such. You should carefully consider your needs and objectives before making any decisions. For additional guidance on how this information should be applied to your situation, you should consult your advisor.

JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC.