Client Profile #2 – Dependent Care
A 42 year old client loses a parent and now has assumed responsibility to care for the 70 plus year old mother. Mom may already have an attorney, accountant, insurance agent, and an investment advisor.
In this case, our role as the financial planner is to help coordinate the information sources and assist the
client in describing and documenting assets, liabilities, strengths and weaknesses.
When we conduct a thorough review -
We might provide personal financial statement preparation or annual pro forma income and expense budgeting. As long term care is going to be an issue, we might be needed to investigate LTC expenses and incorporate these into the budget.
Eventually, there will be a need to anticipate and plan for the efficient transfer of assets. We might suggest the client implement a qualified transfers program – helping in accounting for direct payments made to medical and dental providers, educational institutions, and charitable concerns on behalf of dependents or others.
We might help with quarterly tax planning and regular interface with the accountant via reports and data compilation. There may be need for frequent credit checks. There may be a need to review and maintain various insurance policies – home, flood, excess, wind, personal articles, personal liability, renters, auto, workers compensation, business owners, and a home office rider.
There may be a need for document maintenance – organize and itemize safe deposit contents, real estate contracts, and preparation of a side instruction letter. Lastly, there may be a need for constituent reporting – how do you communicate on these matters with your children and other parties of interest?
Would it be helpful if a “family fact sheet” were prepared that would include a summary description of every asset and liability? In the event of an emergency, could a roadmap like this be used to make important decisions?
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