# Managing an Ageing Family Member's Finances — Sorted.org.nz

**Source URL:** https://sorted.org.nz/guides/life-events/looking-after-an-ageing-family-members-finances/
**Publisher/Organisation:** Te Ara Ahunga Ora Retirement Commission (via Sorted)
**Date accessed:** June 2026
**Publication date:** Regularly updated
**Folder/category:** 08 Elder Abuse and Advocacy
**Source type:** Web capture
**NZ-specific:** Yes
**Reliability rating:** High (official Retirement Commission website)

## Why this source matters

Many New Zealanders find themselves managing finances for an ageing parent or relative, often unexpectedly and without guidance. This Sorted guide provides practical, step-by-step advice on when and how to get involved, what legal documents are needed, and how to handle major life changes like downsizing or moving into care. It covers scam prevention, which is critical given that older people are disproportionately targeted by financial scams.

## Summary

This guide helps families navigate the process of managing an elderly relative's finances — from recognising when help is needed, through to handling complex transitions like downsizing the family home, buying a retirement village unit, or entering residential care. It covers essential legal documents (Enduring Power of Attorney, wills), managing bank accounts, protecting against financial scams, and the practical steps to take when major life changes occur.

## Key facts

- **When to get involved:** Look for warning signs — unpaid bills, confusion about money, unusual purchases, requests for money from strangers, signs of scams
- **Who should be involved:** Ideally a trusted family member, with open communication among siblings. Consider professional advice (lawyer, financial advisor) for complex situations
- **Legal documents needed:**
  - **Enduring Power of Attorney (EPA):** Essential for managing finances if the person loses mental capacity. Two types — Property (financial) and Personal Care & Welfare
  - **Will:** Should be up to date before any major life change
  - **Trust documents:** If the person has a family trust
- **Bank accounts:**
  - Joint accounts can be convenient but have legal implications (not always a substitute for EPA)
  - Online banking access should be set up properly
  - Automatic payments for regular bills can be arranged
- **Scam prevention:**
  - Older people are prime targets for phone, email, and door-to-door scams
  - Warn family members about: fake "government officials", "grandson in trouble", "investments", and tech support scams
  - Set up caller ID, block unknown numbers
  - Never give bank details or passwords over the phone
- **Major life changes covered:**
  - **Downsizing the family home:** Process, costs, emotional support
  - **Buying a retirement village unit:** Understanding the Occupation Right Agreement (ORA), entry and exit costs
  - **Moving into a rest home:** Financial assessment, Residential Care Subsidy, selling the home
  - **Reverse mortgage or equity release:** Options for releasing home equity without selling

## Practical use cases

- A woman in her 40s is starting to manage her widowed mother's finances and needs a checklist of what to do
- A family is preparing for Dad to move into a rest home and needs to understand the financial assessment process
- An older person themselves wants to set up their affairs so their children can step in easily if needed
- Siblings disagree about who should manage Mum's money — this guide helps structure the conversation
- A family suspects a relative is being financially exploited and needs to know what to do

## Relevant excerpts

> "If you're looking after an ageing family member's finances, you'll have to think about a lot of things — from day-to-day banking to major decisions about selling the family home."

> "An Enduring Power of Attorney (EPA) is a legal document that lets you manage someone else's financial and legal affairs if they can't do it themselves. It's the most important document for managing an older person's money."

> "Scams are a real threat. Older people are often targeted by scammers who try to trick them out of their money. The best protection is good information and a trusted family member who can help spot the warning signs."

## Related links

- [Sorted - Retirement Planning Guide](https://sorted.org.nz/guides/retirement/how-to-plan-save-and-invest-for-retirement)
- [Sorted - Enduring Power of Attorney](https://sorted.org.nz/guides/legal-and-estate-planning/enduring-power-of-attorney)
- [Community Law - Protection for Older People](https://communitylaw.org.nz/community-law-manual/test/protection-for-older-people-against-abuse-or-neglect/)
- [Office for Seniors - EPOA resources](https://www.officeforseniors.govt.nz/our-work/promoting-enduring-power-of-attorney/)
- [Netsafe - Online safety for seniors](https://www.netsafe.org.nz/advice/seniors/)
- [Age Concern - Financial abuse prevention](https://www.ageconcern.org.nz/)

## Notes

This Sorted guide is a practical resource rather than a legal document. The Retirement Commission updates it periodically. Always seek independent legal advice for specific situations, especially when setting up EPAs or making decisions about property. The guide covers general principles — individual circumstances vary.