Managing finances after 80: Answers to three major personal finance questions for super senior citizens
heirs. Second, how to balance the need for financial freedom with dependence on children during one’s lifetime. Third, how to provide for the care and comfort of the surviving spouse when one has passed away.
The first question has been answered in an earlier column. Simplifying one’s finances is always a good policy in retirement, especially if one crosses the age of 80. There’s nothing sacrosanct about this number in this day and age, but simplification helps both the investor and his heirs. The first step is to complete any pending asset-related processes. Verify and update nominations, check and organise title deeds, consolidate multiple accounts and folios, close dormant accounts, dematerialise paper shares, and review joint holdings for proper operation.
The second important step in estate planning for the elderly is making assets accessible to heirs. Many investors leave their children unaware of their assets, causing confusion after they pass away. Consolidate assets and record details, including e-mail and Internet banking access, in a notebook or spreadsheet for easy reference. With advancing age, either trust heirs with account details or ensure they can easily access them after one’s passing.
The third step in accessibility is to liquidate assets that are cumbersome to deal with after the investor has passed. Land, property, jewels and such physical assets are tough to access and use, or liquidate if the heirs are residents in another country. Financial assets are relatively easier to operate and
