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Money is one of the greatest stressors for adult children overseeing their parents’ care from afar. They want their parents’ caregivers to be able to purchase items their parents need, and they want their parents protected from potential financial abuse and identity theft.
Senior Businessman Looking Through BinocularsI believe most caregivers are honest people. It only takes one person to commit fraud, however. Regardless of whether the family has known a caregiver for years or has just met the individual, it is wise to take precautions.
How can families monitor the situation from a distance? Using on line tools and letting caregivers know you are watching can help avoid problems:

  • Engage a caregiving agency. Unlike independent caregivers, agency employees are bonded and agencies carry liability insurance. An agency will also take care of the caregivers’ employment taxes, avoiding a potentially expensive quagmire when these required taxes go unpaid.
  • Avoid giving caregivers access to a bank debit card or a credit card. Instead, open and have caregivers use a pre-paid debit card, such as VISA Buxx, to buy groceries and other every-day needs. You can upload funds onto the card as needed and monitor transactions on line. (See my blog post: https://moneycarevt.com/blog/money-for-elderly-parents-groceries/)
  • Require caregivers to save, sign, and send you all receipts to match to statements.
  • Make arrangements to pay bills. Hire a daily money manager or have the bills sent directly to you.
  • When you visit your parents, get to know their caregivers’ supervisor. If you see an unusual or suspicious transaction on-line, make an inquiry to the supervisor.
  • Request free credit reports, one from each of the three credit reporting companies every four months. The companies are: Experian.com, TransUnion.com, and Equifax.com. Credit reports are available at www.annualcreditreport.com.
  • Place a security freeze on your parents’ credit. With a security freeze, the credit reporting companies cannot release an individual’s credit report without his or her consent. This means new loans and credit cards cannot be issued in your parents’ names unless the freeze is lifted. There is a small cost to put the security freeze on and to lift it, even for a short period. The rate you pay is set by the state in which your parents reside. To set up a freeze, visit each credit reporting agency separately.

It is not easy to be far from your parents and know what is happening day-to-day. With these techniques you can keep tabs on your parents’ daily money activities.


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