From the Expert | 6 Steps to Financial Planning For Your Aging Loved One’s Future
Have you started to wonder when it might be the right time to step in and help an aging loved one manage their finances? Maybe you’ve noticed subtle signs—like unopened bills piling up—or perhaps you’re simply thinking ahead about their future. Either way, recognizing the need for support is an important first step, and it may be time to begin having these conversations.
Financial planning involves aligning financial decisions with both short- and long-term goals, including saving, tax strategies, retirement preparation, and estate planning.
When planning for an aging loved one, the focus often shifts to areas such as estate planning, asset protection, maintaining stable cash flow, and budgeting for healthcare needs. To better understand how to approach these priorities, we spoke with Matt Foltz, Partner and Wealth Advisor at Corient Private Wealth.
With over a decade of experience, Matt specializes in building low-cost, tax-efficient portfolios while delivering comprehensive financial guidance tailored to each client. Read on to learn Matt’s step-by-step guide to financial planning for your aging loved one.
6 Financial Planning Steps (From the Expert)
- Start Discussions Early
Begin the conversation sooner rather than later. For many older adults, handing over control of their finances can feel deeply personal and difficult. Approaching the topic early—while your loved one is still healthy and able to actively participate—allows for a more gradual, respectful transition. Rather than rushing into decisions during a crisis, early discussions create space for collaboration, helping your loved one feel supported instead of sidelined.
- Identify Goals
Once your loved one is open to planning, take time to understand what matters most to them. Discuss both short- and long-term goals: where and how they want to age, their financial priorities, their preferences for medical care, and how they wish their assets to be handled in the future. These conversations provide the foundation for a thoughtful, personalized financial and estate plan.
- Organize + Assemble
Next, begin assembling all relevant financial and legal information.
This includes:
- A comprehensive list of financial accounts and assets
- Key legal documents, such as birth certificates, Social Security information, property deeds, insurance policies and wills
- A clear understanding of the status and condition of each account and asset
While this step can be time-consuming, having everything organized in advance allows financial advisors and attorneys to build a more effective and accurate plan.
- Simplify Finances
With a clearer view of your loved one’s finances, look for opportunities to reduce complexity. Streamlining accounts, closing unused credit cards, and consolidating financial holdings can make day-to-day management easier. Transitioning to digital tools—such as direct deposit and automatic bill pay—can further reduce the burden.
Simplification also plays an important role in protecting against fraud. Older adults are often targeted by scams, so consider adding safeguards like transaction alerts, call-blocking tools, and registration with the National Do Not Call Registry. Encourage thoughtful decision-making, and advise your loved one to avoid making large financial decisions impulsively, especially over the phone or through an unknown party.
- Build an Estate Plan
An estate plan serves as a legal framework for how your loved one’s financial assets, property, personal items and healthcare decisions are managed, and distributed upon their passing. Not only does an estate plan identify the what and how, but it also confirms who is authorized to make decisions on one’s behalf if they are unable to make decisions themselves.
Key components include:
- Will: Details how assets will be distributed
- Powers of Attorney: Appoints an individual to manage financial decisions
- Healthcare Directive: Specifies medical and health-related desires, and appoints an individual to make healthcare decisions
- Revocable Trust: Manages assets during life and distributes assets to appointed beneficiaries after death
In addition to these documents, it’s important to regularly review beneficiary designations on bank and retirement accounts.
- Regular Checkups
Financial and estate plans should evolve alongside your loved one’s needs. Revisit these plans every few years—or sooner if there are changes in health, living arrangements, or financial circumstances. Regular check-ins with a financial advisor can help ensure that healthcare costs, risk tolerance, and long-term goals remain aligned.
Ready to start planning for your loved one’s future?
If your aging loved one is ready to thrive in their next stage of life, Open Arms can help find the best quality care and elder care planning resources. Schedule a free in-home assessment or call (847) 272-4997 today.