The Responsibilities of a Financial Caregiver | What is Financial Caregiving

Caring for someone you love often goes far beyond physical and emotional support. Whether you’re managing bills, overseeing investments, or making sure insurance premiums are paid on time, you’re handling critical responsibilities that impact your loved one’s daily life and long-term stability. If you’ve ever asked yourself, “What is financial caregiving?” or wondered whether you’re considered a caregiver, you’re in the right place. 

In this blog post, we’ll break down what a financial caregiver is, the key responsibilities involved in financial caregiving, and how you can get the right support to manage this important role effectively.

What is a Caregiver?

A health caregiver is responsible for providing physical assistance in order to maintain the quality of life of the individual in your care. 

Some of the duties include: 

• Bathing. 
• Providing driving assistance. 
• Being a companion. 
• Communicating changes in physical/cognitive capabilities with family members.

What Is a Financial Caregiver? 

A financial caregiver is responsible for the ongoing operation of the family household and the protector of wealth from those who could take advantage of it. 

A financial caregiver’s qualifications include:

• Attention to detail. 
• Knowledge of personal finance. 
• Communication skills.
• And most importantly, TRUST of the family (maybe your own) in your care.

How a Financial Advisor Can Support Your Role As a Financial Caregiver

Who knows more about your loved one’s current financial picture, can efficiently assess the impact on their legacy plans, and take action than their own financial advisor?

If your loved one is not working with a fiduciary, or their fiduciary is not prepared to assist with the financial caregiving responsibilities, then seek help elsewhere.

As a financial caregiver, your responsibilities go far beyond paying bills. Financial caregiving requires you to monitor, protect, and manage all aspects of your loved one’s financial life. 

Here’s what that may include, that we are committed to supporting financial caregivers with:

Monitor Communications

Unless all bills are set up on autopay, notifications can arrive by snail mail, email, or text message. We can make all the necessary arrangements to have the snail mail forwarded to whomever you designate. We have a technologist who can arrange for you to have access to your loved one’s email account and devices.

File For Government Benefits

Social Security does not suddenly start mailing checks. You must apply for it. A Power of Attorney is not sufficient for filing for government claims; the recipient must sign the application. We will guide you through the process, which includes completing form SSA-1696 required to assign responsibility to whomever you deem trustworthy.

Pay Premiums

Insurance policies have a limited window to extend coverage without payment before the policy is cancelled. We will review (or create) a financial plan and evaluate your coverage. We will work with you to have premiums set up on autopay, or discontinued if the coverage is no longer required.

Reconcile Accounts

If the person in your care has been a victim of a scam, it ultimately will reveal itself in the financial records. We will create a centralized repository of all things financial and review activity for suspicious behavior.

Manage Investments

Even if investments are managed by capable professionals, the circumstances have significantly changed. We will reassess your situation and prepare recommendations for you to discuss with their advisor. If they do not have an advisor, we can manage their assets for them.

File Tax Returns

If the person in your care has a history of owing taxes, the individual may be liable for penalties if they are not paid on time. We provide tax preparation for our members. Members can access their financial information and supporting documentation directly through our portal.

Manage Cash Flows

If the individual is counting on a refund, they may have a financial shortfall. We will analyze your current cash flow requirements and create a strategy to ensure all financial obligations are funded in a timely manner.

Seek Support In Your Financial Caregiving Role

The role of a financial caregiver is an enormous responsibility that takes time – time you may not have to give. But being a financial caregiver for someone doesn’t mean you have to go at it alone. Ask for help! 

We work with financial caregivers and provide them with tools, support, and guidance so you can thrive in your caregiving role and make the best financial decisions for your loved one. 

Visit our contact page to book a consult with our team today!