It is a fact that more and more our lives are dominated by the internet and various applications or “apps.” Most of us are now conversant with email, especially if one wants to talk to grandchildren. In addition to “social media,” most business transactions are done with the assistance of an electronic record of some kind. Whether you want to get a bank statement, pay a bill, or advertise items for sale on eBay, there is a computerized way to complete the job. Often the volume of electronic data flooding your email can be daunting and can lead to the overlooking of bills and other important documents. When combined with age and physical issues, the result can be mounting credit card debt and lapsing of important accounts such as utility payments or rent. When this begins to happen, seniors may need some assistance in handling their financial affairs.
There are a number of steps you can take to lessen the burden of managing household finances. The first choice of many in this situation is the help of a child or spouse to pay bills and address problems. This does not require any involvement of persons or agencies outside the family. It does, however, require frequent contact, which may be difficult for children who do not live nearby. Some families open joint bank accounts to make it easier to pay bills. The execution of a power of attorney appointing the family member can make it easier to share the responsibility of paying bills.
Help outside the family
If it is not practical to enlist a family member in handling finances, seniors may want to take advantage of the state’s Money Management Program, which is administered in our area by Minuteman Senior Services and carried out by trained volunteers. The volunteers work with seniors to establish a budget, list monthly ongoing expenses, balance checkbooks, reconcile bank statements, prepare checks for the senior’s signature, and other such tasks that are required to maintain financial health. Help with these routine tasks can ease the worry of unpaid bills.
Another option is the Social Security Administration’s Representative Payee Program. If an individual is unable to handle finances, the SSA may appoint another individual to be a representative payee (rep payee). The SSA will issue checks directly to the rep payee once the appointment is approved. Before doing so, the agency reaches out to relatives, friends, and medical professionals to help determine the need for a rep payee. If it finds that the senior is in need of help, it will proceed to appoint a rep payee, usually a family member or friend. If the individual has a guardian, the guardian will automatically be appointed.
A rep payee is required to spend the beneficiary’s check for the benefit of the individual. This includes housing, food, medical care, and other required expenses, as well as entertainment. The rep payee must keep records of expenditures and report annually to the SSA on how the money was spent. The rep payee may not spend the money for his or her benefit or charge a fee for services. Criminal penalties can be imposed if the rep payee misuses funds.
No one likes to give up control of household finances. However, having some friendly assistance can help maintain independence and do away with nagging fears. If a senior or a loved one is having difficulty, it is always a good idea to consult an elder-law attorney.
