For older adults aging without immediate family support, managing personal finances can be especially challenging. Solo-agers often navigate rising medical costs, declining mobility and increasing complexity in financial decisions without a trusted partner to assist. That’s why building a strong financial support system and legal framework is essential.
The first step is deciding who can step in to help if you're ever unable to manage your finances. This may be a close friend, a younger relative, or even a professional fiduciary. Solo-agers should choose someone trustworthy and financially responsible, not necessarily a family member, to serve in this role.
Once you've selected a potential helper, discuss your expectations with them. Discuss how you want your money handled, what matters most to you and where your financial records are stored. Open communication now can prevent confusion and errors later.
Even if you trust someone, they need legal authority to act on your behalf. A durable financial power of attorney allows your designated agent to manage your finances if you're incapacitated. This includes paying bills, accessing bank accounts and managing investments.
Without this document, loved ones may have to go to court to get control over your finances, which can be expensive and time-consuming. A lawyer can help you draft a power of attorney that reflects your wishes and complies with your state’s laws.
You may also want to consider naming a successor trustee if you have a living trust. This person would step in to manage your trust assets if you're unable to do so yourself.
Solo-agers should create a master list of accounts, passwords, insurance policies and key contacts. This list should be updated regularly and stored securely with your attorney, in a locked drawer, or with a secure digital service.
Ensure that your estate planning documents (will, trust and powers of attorney) are complete and readily accessible. Without proper documentation, your assets may be delayed or mismanaged in the event of illness or death.
Consider financial management tools that provide transparency. For example, some banks and credit unions offer account monitoring features that can alert a trusted contact to suspicious activity.
Hiring a daily money manager, especially if you struggle with bills or paperwork, can also help. These professionals assist with routine tasks, such as organizing statements, paying bills and setting budgets.
For complex portfolios or retirement distributions, a financial advisor with fiduciary responsibility can be a valuable part of your support team. Be sure to vet any advisor’s credentials thoroughly.
Solo-agers face an increased risk of financial exploitation, especially in later stages of life. Planning reduces vulnerability and ensures that your money continues to support your values and needs.
Waiting until a crisis strikes can leave you with fewer options. By putting a plan in place now, you remain in control, even if your health or cognition declines later. Schedule a consultation today to start the process.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
