Your Parent Can’t Manage Money Anymore — What Can an Adult Child Legally Do?

When an aging parent begins struggling with bills, accounts, or financial decisions, an adult child may want to step in, but being family doesn’t automatically provide legal authority over the parent’s money. A power of attorney, trust, Social Security representative payee appointment, or court order may be needed depending on the assets involved, and anyone serving as a fiduciary must manage the parent’s money for the parent’s benefit, keep funds separate, and maintain good records. SpeedKingz/Shutterstock

The first sign may be a stack of unopened bills, an electricity shutoff notice, or a parent suddenly sending hundreds of dollars to someone they’ve never met. When an aging parent can no longer safely handle money, an adult child may feel obligated to step in immediately, but being someone’s son or daughter doesn’t automatically give you legal authority over their bank accounts, investments, property, or Social Security benefits. What you can legally do depends on what documents already exist, what decisions your parent can still make, and sometimes the law in the state where they live. The Consumer Financial Protection Bureau offers specific guidance for people managing a parent’s finances because taking control without understanding your authority can create financial and legal problems of its own. Here’s where families can start and when professional legal advice may become necessary.

Start by Finding Out Whether a Financial Power of Attorney Already Exists