The Consumer Financial Protection Bureau has published new guideline booklets to help lay persons properly manage other people’s money when acting as a fiduciary. For example, if you are managing money for your elderly parent or anyone by virtue of that person naming you agent under a power of attorney, you are subject to fiduciary duties the breach of which may subject you to a lawsuit or other legal action. So, to help ensure you stay within the bounds of what the law allows you to do, it’s worth taking a look at these brochures and make sure anything you do stays within these bounds.
The Managing Someone Else’s Money guides are for agents under powers of attorney, court-appointed guardians, trustees, and government fiduciaries (Social Security representative payees and VA fiduciaries.)
The guides help you to be a financial caregiver in three ways:
They walk you through your duties.
They tell you how to watch out for scams and financial exploitation, and what to do if your loved one is a victim.
They tell you where you can go for help.
Remember, an ounce of proper planning and prevention is worth a pound of cure!
- How to Manage a Loved One’s Financial Affairs (business.time.com)
- Your Money Adviser: New Guidelines Aim to Help Financial Caregivers (nytimes.com)
- Managing Mom’s Money? Do It Right. (aarp.org)