The idea that a child or acquaintance “shoulder” the concerns and finances of your life can be comforting. Having someone else to pay your bills and monitor your well-being can be a relief. For many, this ends up being the end of freedom and security.
You love your children, or that special niece or grandchild. You are so connected to them. You may think that adding their name to your bank or other financial accounts will increase your bond and the ongoing warm and fuzzy relationship. Be very aware.
An acquaintance wanted her daughter to have the family home so badly that she took the lead and did all the legal work to turn the house over to her daughter. Her daughter’s name has been added to all of her savings and chequing accounts. For the rest of her life, this poor woman never had a life. From that point on, her daughter made all the decisions about what her mother’s money âwasâ. She would even rip up whatever type of credit card or retail purchase her mom was trying to get with comments like, “You don’t need it.” The mother spent her last years hearing from her daughter almost every week that she was going to “put her in a nursing home.”
Another acquaintance with a healthy savings account and a nice house handed everything over to a nephew and gave him his power of attorney. He quickly made the decision to put her in a retirement home, telling her that she would be better off. He now drives his car and spends on his checking account. He told her that she will have to sell her house to cover the costs of her nursing home care.
Just recently an old acquaintance said, âI don’t have cash. My son takes care of paying all my bills, groceries and more, but I don’t have access to any money.
There is always the possibility that one of us will become physically or mentally disabled. Make your legal arrangements for when and if this happens. Beware of putting children or relatives on your accounts right now. Get with your lawyer and write a document that says, “When such disability occurs or death occurs, Mr. or Mrs. John Doe must have ‘this’ or ‘that’.
Of course, do whatever you want to do. Sometimes it works. However, do you really need someone to tell you, “Now mommy, now daddy, do you really need to buy these shoes?” Or “Do you really need to take this trip?” “Now mum, now daddy, do you really need to go shopping at the mall?” Hi my friend, this is your money. You and your spouse solve it and if you live alone, you and God can solve it. It may be a good idea to seek professional financial advice. However, you can do this without giving up your personal freedom.
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Contact Dr Glenn Mollette at [email protected]. Learn more at www.glennmollette.com Like his facebook page at www.facebook.com/glennmollette