Planning and Caring for an Aging Parent

Linda, 63, had recently been granted power of attorney over her father’s affairs due to his declining faculties. Robert had been a successful family doctor who had built a large practice over the years and accumulated significant wealth over his working career. Now in his 90’s, his ability to manage his own healthcare and finances has diminished. His investments and savings totaled over $10 million in liquid assets with numerous financial institutions.

Due to the emotional strain of her father’s declining health and the sheer complexity of his financial interests and large estate, Linda felt overwhelmed.

Development and Implementation

We met with Linda several times to discuss her worries regarding her father’s health and her newfound responsibilities. Before exploring the minutiae of Robert’s finances, we collaborated with his accountant and estate attorney to ensure that the right decisions would be made on his behalf.

We then explained to Linda how we could help her. First, we would create a process to consolidate information and data on Robert’s assets to keep her organized. Next, we would provide advice and recommendations on the investments to manage risk and generate income to provide for her father’s care.

After reviewing all of Robert’s accounts and holdings, we consolidated his assets and positions into fewer accounts. Through our comprehensive review, we made changes to manage the portfolio risk, maximize income, and simplify the reporting process. By working with Robert’s accountant, we were able to address issues related to the tax consequences of our changes. Our process was motivated by her father’s current needs and Linda’s future goals.

Results

Linda chose to work with Sacks & Associates Wealth Management over her father’s other advisors because we emphasized her needs and feelings, not the value of her father’s estate. Besides simplifying and organizing Robert’s investment portfolio’s many assets, reducing tax liability, and generating an effective reporting mechanism, we emphasized the significance of helping our client familiarize herself and become comfortable with her new responsibilities of caring for her father, his estate, and her future inheritance. This was accomplished with the same care and attentiveness that we provide to all our clients by putting their needs first.