Some Important Financial Documents For Seniors

Assisted Living

There are many financial documents that a person above the age of 65 should keep and oftentimes, the first task of an accountant while getting involved in the legal planning process of a senior person includes keeping a records inventory of all the necessary and important documents. Getting these important financial documents together is very much important as it can be a difficult task for the family members of a senior person if the senior become incapacitated suddenly. Our experts in senior living and assisted living share the details of some of the important financial documents that a senior person should keep.

Details Of Bank Accounts

It is important for a senior person to make a list of all the active bank accounts and lines of credit. Keeping this list makes it easy for the power of attorney of the senior person to pay bills and transfer funds if necessary.

Tax Returns

Details of tax returns might be necessary to find the eligibility of the senior person for government benefits for housing assistance or long-term care. As per the IRS, details of tax returns from the previous 7 years should be added to the financial documents to determine the eligibility for various government benefits.

Pension Documents

Important documents like annuity contracts and summary plan descriptions for 401 (K) pension plans might be needed to verify the income of the person, designate beneficiaries, or make financial arrangements for a spouse in the event of an unexpected death.

Securities And Brokerage Accounts

Details and documents of all bonds and stock holdings will be required to offer a complete accounting of assets and take steps to transfer assets in the event of the death of the person. In some states, a “transfer-on-death” designation can be added to brokerage accounts.

Business Operating Agreements

Business operating agreements can help family members resolve questions about the deceased senior person’s assets, ownership, and obligations for businesses that are structured as an LLC or a partnership via business operating agreements.

Loans And Debts

Having a list of outstanding debts like business loans, property mortgages, credit card debt, vehicle loans, and creditor details will help settle debts and avoid debts going to a collection when a senior loved one is incapacitated suddenly.

It can be a lengthy and expensive process for the family members of the senior person to recover the documents and details of financial holdings and assets. Having the important financial documents in tow can help avoid such a situation.