I had a conversation this week with a client that is stepping up to helping out an elderly uncle. Her aunt died a few years ago and they never had any children. Does this story sound familiar to you?

The uncle, while still sharp, is not in the best physical shape and needs help getting around, etc. A common theme with elderly people like this is that they usually have money in several different places – whether it is different banks or investment companies.

In the past it may have made sense to spread your money out to many places to reduce risk, and maybe get a better interest rate; however, with all the consolidation that has taken place, commercial banks have gotten much bigger in size, and interest rates are pretty comparable. Also, the government raised the FDIC insurance coverage to $250,000 per account holder. So, if you find yourself in this situation what should you do?

First, develop a detailed list of your relative’s assets and liabilities. Work with them to identify all of their bank and investment accounts, annuities and insurance coverage (life, long-term care, auto, etc). This may seem easy, but it could take some work. Also, it is not uncommon for older folks to keep cash on hand. Make sure you identify this as well.

Second, take a look at their income and expenses and make sure you have a good understanding of their cash flow. The income could include things such as Social Security, pensions, and IRA withdrawals. If the expenses exceed income they, will need to take more money out of their investments. Doing a thorough review of the expenses would be advised as well.

Third, determine if your relative has drafted all of the necessary legal documents – will, power of attorney and living will. These documents are critical and will help make sure legal issues do not surface should he/she become incapacitated. This process could also include you, or some other relative, getting added to the relative’s checking account to assist with bill paying, etc.

Finally, take the time to talk with your relative about your family history and jot down everything you can. My experience in these situations is that these relatives can provide a lot of genealogical info in addition to documents and pictures of your deceased family members. Enjoy the time together and best of luck to you!

Jim Heisler is a Certified Financial Planner with Family Wealth Services in Holmesburg. You can read all his Financial Perspective columns here.

Registered Representative, Securities offered through Cambridge Investment Research, Inc., A Broker/Dealer, Member FINRA/SIPC and Investment Advisor Representative, Cambridge Investment Research Advisors, Inc. a Registered Investment Advisor.  Family Wealth Services, LLC and Cambridge are not affiliated.

Jim Heisler, CFP®, CDFA™, CASL™ Family Wealth Services, LLC is located at 8275 Frankford Ave. (215-332-4968)

The views expressed are not necessarily those of Cambridge and should not be construed as an offer to buy or sell any security. These situations are hypothetical in nature and do not represent a specific client.