No one likes to think they may need to be taken care of someday but the truth of the matter is that many of us will need some kind of help at some point in time due to mental or physical disability. If and when that time comes for you, someone else will be taking care of your financial matters. You can make it easier for that person (your “caregiver”) by taking control of your financial information today.

Make a List for Emergencies
You can begin this process by making a list of the important information your caregiver would need to know in case of an emergency. Such a list should include the location of the following important documents: safety deposit box key; bank account information; current bills; health insurance policy; Social Security card; life insurance policy; home or property deed of sale; will; living will; power of attorney; income tax returns; and burial vault/plot receipt; as well as those friends and relatives you wish to have contacted in case of a serious emergency or death.

For convenience, you may want to give the list directly to your caregiver. Of course, you may prefer to keep it in your own possession or to give it to a trusted third party, such as an attorney or accountant. No matter what you decide to do with the list, make sure your caregiver knows where he or she can find it.

Share your Financial Information Early
Once you feel confident your caregiver can locate key documents easily, you should allow him or her to become familiar with your financial affairs. While this may seem intrusive to some, the introduction of your recordkeeping to your caregiver is vital to both of you.

Let’s face it. The amount of financial information we are required to keep track of these days can be quite overwhelming, and as time goes on and this information continues to accumulate, the task becomes that much more daunting. By sharing it with your future caregiver, he or she can gain an acute understanding of your financial affairs with your help while you can benefit from the assistance of another pair of hands as you wade through the information.

Organize Your Information Carefully
Your caregiver can also help you get organized if you do not already have a system in place. Some suggestions for managing financial information include creating a simple filing system, setting up a tickler file, or simply building a mail file for the tax preparer…

Filing System
Creating a filing system for your bills decreases the amount of time it takes to locate and match your statements to your checkbook at the end of each year. Your system can be as simple as a set of manila folders labeled from A to Z held in a large, collapsible manila file. All you need to do is file your bills under the appropriate letter. For instance, “B” for bank statements (this should include your canceled checks), “E” for electricity and “T” for telephone.

Tickler File
Setting up a “tickler file” helps to remind you when your tax deadline is approaching. As we all know, federal and state income taxes are due April 15 (with some exceptions), but for some seniors, quarterly estimated taxes are due April, June, September and January 15. So, even if you know when your taxes are due, your caregiver may not. Therefore, while the tickler system may not necessarily benefit you now, it will when your caregiver is handling your taxes. (Note: For future purposes, you may want to ask your tax preparer to begin sending a duplicate of your Declaration of Estimated Tax to your caregiver.)

Mail File
Building a file of all the mail you receive each month and sending it to your tax preparer at the end of each month (excluding personal correspondence and checks to be deposited) will ensure your tax information is being handled appropriately at tax time. Unfortunately, it will not help your caregiver become familiar with your recordkeeping. Of course, if you are uncomfortable with the thought of your caregiver being privy to your financial affairs, this would be your best option for financial organization.

Don’t Wait For Something to Happen
As hard as it may be to face the facts, we all grow old and some of us become mentally or physically incapacitated. When that time comes, are you confident that your caregiver—your wife, husband, son, daughter, grandchild—will be able to handle your financial affairs without your help?