New research from Merrill Lynch and Age Wave found that high-net-worth individuals serving as caregivers to family members spend significant sums of money on their loved ones and manage complex financial matters on their behalf.
The vast majority of HNW caregivers are financial coordinators who oversee various complex tasks for loved ones such as monitoring accounts, filing taxes and making insurance claims.
According to the study, 86 percent of HNW caregivers are also responsible for a parent’s investments. That number is 27 percent for non-affluent caregivers. Yet half of financial caregivers do not have legal authorization to perform that role.
"Make sure to review and update relevant legal documents, including a will, an advance medical directive, a durable power of attorney and a health-care proxy, according to Cynthia Hutchins, director of Financial Gerontology for Merrill Lynch Wealth Management.
The study found HNW caregivers spend $15,000 on caregiving expenses—twice as much as total caregivers who spend on average $7,000 annually.
HNW caregivers were twice as likely as total caregivers to have family members who live in a long-term care facility and are more likely to have professional caregivers, the study found.
The results were based on a survey sample of more than 300 HNW respondents with $1 million or more in investible assets.
Merrill Lynch and Age Wave collaborated on the new research initiative to gain greater understanding of the experiences and challenges people face during different life stages.
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