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Jake unexpectedly needed to care for his older brother, Greg. Now in his sixties, Greg never married. Jake is his only family. When Greg was hospitalized with a serious illness followed by several months of at-home care, Jake stepped in to help, including tending to his bills and tax returns.
Greg’s papers were in disarray and, initially, he could not communicate well. One of Jake’s biggest challenges was figuring out Greg’s finances: What are his bills? Does he have any loans? Does he have any income in addition to work?
When your loved-one isn’t able to communicate about his bills and income or doesn’t have a list ready, you become a detective.
Here are tips on where to find this information so you can corral your relative’s financial affairs.
Checkbook registers and bank statements. Here you should find records of monthly and quarterly bill payments. If there is no checkbook register and the bank statements don’t reveal much information, try to locate check images. If your family member appointed someone to serve as her agent by power of attorney, the bank should grant the agent on-line access where he or she can see check images. Bank statements will show sources, amounts and frequency of direct-deposited income.
Paper piles, stacks of mail, file cabinets, desk drawers, and boxes. While it may take time to sift through the papers, they can be a gold mine of information. If you don’t find any mail, try looking in drawers and other likely places it may have been stashed – including the trash.
Incoming mail. Sometimes it’s necessary to gather the mail and figure out the details as it arrives.
Credit reports. This will reveal your loved-one’s current debt, such as credit cards and loans, which need to be paid. You can help him obtain a free annual credit report at annualcreditreport.com.
Tax returns. When you need to file your family member’s tax return, past returns are a map to preparing the current one. Tax returns reveal sources of income, investment holdings, and deductions. What was reported in past years gives you a guide to what documents and information you need to collect this year. Tax returns will also tell you whether your family member makes estimated state and federal income tax payments throughout the year and the name of his tax preparer.
Living situation. Based on where your family member lives, you can make assumptions about what bills she pays. For example, if she owns her home, she should be paying property taxes and homeowners insurance, and perhaps a mortgage. You can contact the city for information about taxes due and any city-run utilities such as water and sewer. For insurance and loan information, you will need to dig through paperwork. Mortgages should show on credit reports and past tax returns. If she rents, a call to the landlord will tell you what utilities are included in the rent.
By looking through all these places, Jake was able to piece together his brother’s finances. Some bills were paid late, but once Jake learned of them, he was able to keep them paid. Greg recovered from his illness, returned to work part-time, and is again managing his own financial affairs. Both brothers agreed they would each put together a comprehensive list of their financial lives should this situation happen again – to either of them.
 
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice.  Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate. The names of the individuals in this article have been changed to protect their privacy.
 


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