How to help a loved one manage their money
Things change as family members get older. Sometimes, we're called on to help a loved one manage their money.
I've been in that situation a couple of times and it's not easy, especially when you don't have any professional training as a money manager.
Here are four guidelines from the Consumer Financial Protection Bureau:
1. Act in the other person's best interest: As a fiduciary, you should not loan or give the person's money to yourself or others. You should also avoid any conflicts of interest.
2. Manage their money and property carefully: This includes paying bills on time, protecting unspent funds, investing carefully and having a list of all money, properties and debts.
3. Keep their money and property separate from yours: That means no joint accounts.
4. Maintain good records: As a fiduciary, you should keep a detailed list of the money received or spent on the other person's behalf.
Remember, as a fiduciary you're supposed to be honest and act in good faith. If you don't, you be sued or you might have to repay money.
More Info: What to do when managing someone else's money