Watch how a woman discovered $300,000 for a relative
ATLANTA - Here's a headline that ought to catch your attention, "How I Discovered $300,000 for an Elderly Relative." What a windfall, right?
I often interview a terrific financial advisor Lisa Brown. She tells us how we can better manage our money for retirement. Well, on vacation this summer she actually used her know-how to help out a 94-year-old relative. She took a look at her aunt's tax return and found that this very organized woman was missing some very important paperwork when she looked at her tax return.
"I said, 'Aunt Gigi, I see there is $,5000 in dividends from this one stock. Can you find an account statement for that stock? I realized this stock was worth $300,000. What she had remembered was that 40 years ago when she had inherited this stock it was worth $5,000. It's grown significantly in value over the years. She's never sold any of it. She's just lived off the dividends.
Lisa Brown of Brightworth says Aunt Gigi had forgotten about it. What's more Ms. Brown, the money manager, found more money. She did a deep dive into Schedule B of her aunt's tax return and found a life insurance policy from her husband who died 20 years ago. Fortunately, she was there to be able to ask her older relative about this paperwork. When that person passes it becomes detective work trying to find assets.
Here are 4 ways to avoid this. Gather a full list of your elderly relative's assets and debts. Collect key financial documents: tax returns, wills, and financial power of attorney. All of it. Now that you have that tax return, pay special attention to Schedule B. This is where you can find hidden assets. Make sure all copies are signed, make copies for relatives and advisors.
Elderly Relative Documents
1. List of assets, debts
2. Collect documents: tax return, will, power of attorney
3. Schedule B
4. Signed, copied
When you get all of that together, put it in one place, maybe make copies, and let a trusted person know where to find it when you are either unable to speak for yourself or you have passed. If you don't gather this stuff now, you are going on a treasure hunt after they are gone. And then you can't ask questions. It can take, literally, years to find all of the financial pieces.
Do you have to be a money expert to know what you're looking for? No, just start gathering and much of it should come together for you. If you feel confused, then reach out to an expert like a financial advisor for some guidance.