Financial Planning Tips for Childless Seniors

Married seniors usually designate each other as caretakers of their health and their finances, with adult offspring as their back-up plan. But for those without children, some of the decisions are a little tricky. Other choices can be easier.

Tips for Childless Seniors

• Find someone to designate as your "health care agent" who can help you in an emergency or if you must be hospitalized, such as a sibling, friend, niece, or nephew. Make sure this person is willing to take on the task and understands your wishes.
• Consider a reverse mortgage for emergency expenses or to pay for extra care. Seniors with children sometimes worry that a reverse mortgage uses all the equity in their homes and deprive their children of an inheritance. Seniors without children do not share those concerns, and can be reassured that reverse mortgage rules allow seniors to stay in their homes as long as they wish. A reverse mortgage line of credit can be a perfect source of emergency funds or seniors can opt for lump sums or monthly incomes.
• Designate someone as your agent with financial power of attorney who can handle your investments, follow up with your reverse mortgage lender, and pay your bills.
• Make sure your health care agent and your financial agents work well together.
• Appoint back-up agents and perhaps even a corporate trust company with a relative or close friend as co-trustee to oversee their decisions.
• Married and childless seniors often designate each other as beneficiaries. Consider how your estate should be divided after each spouse passes on to be sure you are both comfortable with the decisions.

If you have a reverse mortgage, the loan does not come due until the home is sold or both owners have passed away. The loan is repaid from the sale of the home. Compare quotes from reverse mortgage lenders to determine whether this financial product works for you.