- DENNIS FORDHAM
- Posted On
Estate Planning: Managing the affairs of an aging parent

As a parent ages, or declines in health, he or she may see the need to rely more on their children, typically, to manage their financial, property and legal matters.
This includes managing assets titled to the parent’s living trust, assets owned individually by the parent, and the parent’s other financial and legal affairs.
Relinquishing control is difficult. A parent may fear becoming a bystander. How can an aging parent remain involved with their finances, avoid losing access to their assets, and still receive assistance?
First, consider the parent’s trust owned assets, usually real property and investment accounts. Trust assets can either be co-managed by the parent and one or more children together as co-trustees or be managed by the child(ren) as trustee(s) with the parent’s indirect (behind the scenes) involvement.
An aging or ill parent may decide to remain as a co-trustee to keep his or her name on title to trust assets.
The trust may give the other trustees varying degrees of authority, including independent authority so that any one trustee can act on behalf of the trust without requiring the written consent or joinder of the other trustees.
This last approach is not without risk should the trustees not act in concert with each other or if disagreements arise. Nonetheless, it is a flexible option that allows one or more children to assist in managing the trust.
Alternatively, a parent may resign as trustee but indirectly control the living trust assets. I say indirectly because the trustee of a revocable trust owes their fiduciary duties as trustee to the person with the authority to revoke the trust, in our discussion the parent.
Thus, the child as trustee owes the duty to the parent as the settlor because the assets in the living trust belong to the settlor who can revoke the trust and regain direct title to the assets. Moreover, the parent can terminate and replace trustees.
Second, consider the parent’s financial, property and legal affairs outside of managing the parent’s trust own assets, including retirement accounts and government benefits. A parent may appoint a child with present authority to act on behalf of the parent to manage operating accounts and pay day to day expenses; this way parents’ bills and living expenses do not become delinquent.
The scope of authority granted in the power of attorney may be narrow or broad. The parent may also name the child as an authorized signor on one or more of the parent’s bank accounts so that the child can write checks and pay the parent’s bills from such “signor accounts.”
The funds in the account still belong to the parent. However, as with any power of attorney, the possibility for abuse exists.
Third, the parent may also appoint a child, or children, as representatives under an advanced health care directive and Health Insurance Portability Act, or HIPAA, release so that the child can attend doctor meetings, discuss the parent’s health condition, help the parent to understand options and make health care decisions.
Fourth, a lesser level of representative authority can be granted to a “supporter” under a supported decision-making agreement to allow a “supporter” of a disabled person to participate at meetings (including at banks and with professionals) and to act as an advisor to, and as a representative of, a disabled person, as directed by the disabled person.
Depending on the scope of the supported decision-making agreement, the supporter’s role can generally involve many of the same issues covered by powers of attorney and advanced health care directives.
However, the disabled person must still be able to make and communicate their decisions (usually with recommendations) that the supporter can then assist with implementing. This is a much newer approach whose practice remains unfamiliar to most and is not yet so well established.
Lastly, the parent is not limited to relying on children. Trusted friends and professional fiduciaries are alternative options. Anyone who assumes the role does so as a fiduciary with legal duties and liabilities for breach of duties. They need legal guidance.
The foregoing is not legal advice. Consult a qualified estate planning attorney for guidance.
Dennis A. Fordham, Attorney, is a State Bar-Certified Specialist in estate planning, probate and trust law. His office is at 870 S. Main St., Lakeport, Calif. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. and 707-263-3235.