With Tax Day rapidly approaching, many children of aging parents will need to broach the subject of their parents’ money. Many seniors feel that money is a “private” matter that shouldn’t be discussed. When you first approach your parents, do it in a warm and friendly manner. Share your own thoughts about the future. This can allow for the conversation to progress naturally.
The biggest hurdle is opening the line of communication and gaining trust. It may take several attempts, so don’t get frustrated. When you’re ready to move forward, get organized. Finding important documents such as wills, bank statements, previous tax returns, and insurance policies will give you a complete picture of their finances. Organizations, such as AARP, provide free tools to assist in organization and money management.
Seniors can qualify for certain tax deductions. The IRS provides nearly 100 publications that contain information about specific situations. Call 800-TAX-FORM or download from IRS.gov for free copies of these publications. From February 1 to April 15, AARP Tax-Aide assists seniors and their families with tax preparation. Visit their website to search for a location near you.
The best advice is to be prepared, do your homework, and consult with a professional if needed. Helping your elderly parents with tax season can open the door for future discussions. Better money management can result and, in the event of an emergency, cause less turmoil.