If you're a typical elder-caregiver you, or someone else close to your senior,

are helping with bill-paying, insurance claims, applications for benefits,

investment decisions, tax issues, housing, budgeting for care and living costs,

and on and on.

This financial caregiving job can be particularly difficult if you live far

away or if you have other important demands on your time (or both). There are

innumerable pitfalls when you are responsible for managing someone else's

financial affairs. Making a mistake can cost your elder financial security, can

lead to irreparable rifts with other family members, and could conceivably even

lead to legal difficulties.

There are several documents that will make your job as financial caregiver

easier. There's a good review in the articles listed at the bottom of this page.

If you don't have these, you are strongly urged to get them as soon as you can,

unless your elder is no longer able to sign legal documents.

Assuming you have the legal authority to do what has to be done regarding

your elder's legal and financial affairs, here are several things that can help

immensely with the task:

Don't Wait to Get Advice

Get solid financial and legal advice from professionals you know and trust.

Contact bankers, lawyers, accountants, insurance agents or financial planners

your family has dealt with in the past. Let them know of your situation and your

problems. Ask how they'd recommend you deal with matters, and find out how they

can assist.

Consider working with lawyers and financial advisors who specialize in

helping the ill or elderly. Elder law attorneys regularly handle estate

planning, Medicare and Medicaid issues, insurance disputes, fraud cases and

other legal affairs affecting the elderly. Daily money managers are

professionals who pay bills, balance checkbooks, monitor insurance claims and

handle other daily financial responsibilities for other people. Geriatric care

managers typically are nurses or social workers trained to help, or find help,

with various tasks, including money management and evaluating housing options.

Work only with professionals you believe are reputable and ethical. If

friends or relatives can't give you a referral, talk to your doctor or your

doctor's bookkeeper, or a social worker at a hospital or nursing home.

Take advantage of free or low-cost assistance programs. Many lawyers,

financial advisors and other professionals offer free initial consultations. For

ongoing assistance that may be available at reduced or no cost, consider the

services available from private organizations and government agencies in your

city or state. One way to track down these programs is through the href="http://www.eldercare.gov" target=_blank>Eldercare Locator, a service

of the U.S. Administration on Aging.

Dig Into Benefits and Insurance Right Away

Closely review your relative's insurance coverage and government benefits.

You may be pleasantly surprised, for example, to find a disability insurance

policy covers more than just wages; it also could pay for physical therapy or

other services. Similarly, a life insurance policy might have cash value or, in

dire situations, an option to receive an advance payment of some of the policy's

death benefit. You or someone knowledgeable should check out your relative's

rights and benefits under Social Security, Medicare, Medicaid, private insurance

and employee benefits.

Share the Burden

Share financial decisions with the family. The person you're caring for

always should be given as much control and involvement in financial decisions as

possible. If you must assume full responsibility for a relative's finances,

share information with other family members. Open communication about the

financial decisions you are making may reduce the possibility of future

second-guessing. Keep good notes about significant discussions you have with

family members and the actions taken as a result.

Think about sharing duties with family and friends. Some regular

responsibilities, such as bill paying or deposit making, might be done most

efficiently by one person. But don't be shy about asking family, neighbors and

old friends to help out where appropriate, from occasional banking matters to

basic errands, phone calls and letters. Those with legal, health-care or

financial training can be particularly helpful with certain tasks. If help is

available on a regular basis, that's even better. You'll need a break

periodically.

Watch For Risks

Be aware of your possible pitfalls and potential liabilities. As a financial

caregiver you may become a joint owner of a checking or savings account, serve

as a legal representative (through a power of attorney) or become someone's

trustee or guardian. Any time you agree to share responsibility with or for

someone else you may be taking on unexpected risks and liabilities. Before you

sign any documents that have been prepared for someone else, have it reviewed by

a lawyer who represents only you.

Beware of combining your money with that of your senior. Doing so may

jeopardize future benefits, and you may unknowingly  put some of your own

money over the current FDIC insurance limit.

Be prepared for out-of-pocket expenses. Caregivers rarely are paid, rarely

are thanked, and frequently don't get reimbursed for long-distance phone calls,

travel, groceries, medications, personal care items or other purchases. Discuss

a plan for reimbursement with your senior and your other close family members.

Consult with your attorney about the best way to set up a plan for reimbursement

of time, travel and out-of-pocket expenses.

Preserve Your Senior's Autonomy

Respect your relative's opinions and desire for autonomy. "Caregivers mean

well but often, out of their own anxiety and guilt, become overly protective and

begin making decisions that the relative is fully capable of," says Gail Hunt,

executive director of the National Alliance for Caregiving, a Washington-based

organization for families caring for older Americans.

"The care recipient, even if physically frail, should always be making his or

her own financial decisions," Hunt says, adding that important decisions should

be in consultation with other family members, if appropriate. "The caregiver may

have to step in if confusion, dementia or mental illness becomes an issue."

Finally

As a caregiver, it's easy to feel overwhelmed and to forget to take time for

yourself. That can lead to burnout, which isn't good for you or for the senior

who depends on you. With the many resources now available a caregiver doesn't

have to be alone when making or carrying out decisions, even if there are no

other suppportive family or friends to share the burden.