Clients getting older............

[pcmcpa]

Just wondering if anyone has a better way to handle this. A few years back I took on a good client's mom and dad. The mom handled the finances and the dad made it abundantly clear that he wanted nothing to do with handling the money. Mom was in her early 80s, but sharp as a knife. Two tax seasons ago, mom gave me half the records I needed and didn't pay any of the estimated taxes she was supposed to. The situation was rectified when I called the daughter with questions on the daughter's return (at this point I'm thinking how can I bring this up without violating any ethical standards) and at some point she said, "and how's my parents return". So I responded "oh, mom's missing some dividend information (better than $15k.......mom was as I said very sharp) and because she didn't pay her estimated taxes we're going to have a penalty now". At this point I gave her an itemized list of what we needed to complete her parent's return. So now daughter and her sister took over the paperwork for their parents and its working out fine.

This situation reared its ugly head again yesterday as an elderly client called to ascertain that she needed only to send out two returns. I assured her that the federal return with addressed envelope attached and the the state return with addressed envelope attached were the only returns to be mailed. The other return (Which she was looking for an envelope for), which is bound in a green presentation folder and says "Client Copy" across the first page, was her copy for her to keep. So last night I related the conversation with the client's daughter and said "maybe it's time for one of her children to step up and handle the paperwork for her."

Was just wondering if anyone handles this in a more professional/better manner or if its just a universal bad situation that comes up from time time and you just do the best you can. The second client is a family member, and I still felt as if I was doing something wrong ethically by discussing her situation, however, to not bring it to light (in both instances) would be far worse. Any thoughts?

[jainen]

>>I was doing something wrong ethically by discussing her situation<<

Although your intentions were good, you certainly violated your client's right to confidential treatment. You must get your client's permission to work with the family member. It doesn't require anything more than a telephone call (and a note thereof in your file).

If you don't take that easy step, some day the OTHER daughter is going to cause you a lot of trouble.

[kcjenkins]

Best to get something from the older client BEFORE they reach the point of not being able to give competent permission.

[Gail in Virginia]

And although I hesitate to disagree with Jainen, I really think that it is best to have any permission to discuss a client's information in any way, shape or form with anyone in writing.

I like KC suggestion to approach this early with elderly clients, before it becomes necessary. Many of my older customers prefer that I call a child, or other designated party, simply because they have a hard time hearing on the telephone. The only time that I had a client that truly needed someone to take over her affairs, it was obvious to other people as well and they handled talking to the family so that I did not have to.