A health crisis, cognitive decline, or other major life event can suddenly place an adult child in charge of a parent’s financial affairs. In a recent InsuranceNewsNet article, “What to do when adult children become the client,” journalist Anna Baluch explores how financial advisors can help families navigate this transition while continuing to protect the interests of the original client.
Our Chief Investment Officer and CEO, Steven Rogé, explained that one of the first priorities is confirming whether the adult child has the legal authority to act on the parent’s behalf. Once those responsibilities are clear, an introductory conversation can help the advisor understand the child’s role and begin developing a productive relationship.
Steven also highlighted several financial and administrative details families may need to address. These include preparing for long-term care and health care expenses, reviewing beneficiary designations, arranging access to bill payment and household accounts, and documenting caregiving expenses. A formal caregiving agreement may be particularly valuable when several siblings are involved and expenses or reimbursements need to be clearly accounted for.
Whenever possible, these conversations should begin before a crisis. Steven emphasized the value of maintaining updated trusted contacts and completing an estate planning organizer containing account information, insurance policies, and contact details for the family’s financial, legal, and tax professionals. Taking these steps in advance can make a difficult transition more manageable for everyone involved.
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R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, as well as our process, explore our detailed overview of services and approach.
