Estate Planning

How to Deal with Being in Control of Your Parents' Money

By Hull and Hull LLP

The Toronto Star recently published an article which provided some useful tips on how to assist your parents if they have asked you to help with their finances or if you have been given their Power of Attorney.   With an aging population, it is likely that many of us will find ourselves assisting our parents in some way. While acting on a power of attorney may make some tasks easier, the Toronto Star article discusses four basic tips which can be kept in mind when assisting a parent with their finances, whether or not you have a legal document authorizing such action, or if the parent has merely asked for your help. The four tips put forth in the article are as follows;

1. Understand the full financial picture;
2. Don't be afraid to use a professional;
3. Know how much capital is needed to support your parents; and
4. Communicate with other family members.

Taking action on another's behalf can be a potential minefield for litigation. Although the above tips may be helpful, when asked to take over another's finances, whether pursuant to a Power of Attorney or merely at their request, such a role should be taken seriously and should be done with careful attention to the legislation surrounding the obligations of those in such a role. If you have any concerns about acting in this role, make sure to contact a lawyer who can advise you properly in this respect.

Until Tomorrow,

Nadia M. Harasymowycz - Click here for more information on Nadia Harasymowycz.

Full post as published by Toronto Estate Law Blog on December 13, 2010 (boomark / email).