The Trusted Tax Preparer

Secrets of Successful Agers is where I share the best of what I've learned and observed, so you can borrow the strategies that work and use them in your own life.

Sam came into my office because his dad, Harry, had died unexpectedly. Before Harry died, Sam knew his mom, Wanda, was experiencing some cognitive decline. But Harry was there. He paid the bills. He managed the accounts. He handled the finances. And every year, Harry sat down at the computer and prepared their tax return himself using TurboTax.

After Henry’s death, Wanda's cognitive decline continued, and eventually her doctor determined that she was no longer able to manage her own financial affairs. Under Wanda's estate planning documents, Sam was the person designated to step in. Suddenly, Sam was in charge.

He was trying to figure out his parents' bank accounts. Their investments. Their bills. What needed to be paid and when. He was grieving his dad while trying to care for his mom, all while juggling his own full-time job, his marriage, his children and his own household.

And then February arrived and so did the tax documents. 1099s. Tax statements. Investment documents. Sam knew his parents needed to file a tax return. What he didn't know was how his dad had done it. Sam was overwhelmed.

The First Thing We Did

Sam hired me to help guide him through the process of stepping in for his mom and make sure he was fulfilling his legal responsibilities correctly. One of the things I told him early on was: you need a tax preparer.

He contacted several tax professionals. He eventually found someone willing to work with him. That solved one problem. But it didn't solve all of them. Because this tax preparer had never met Harry or Wanda. The preparer didn't know their financial history. Sam didn't know their financial history. And so they were essentially trying to piece it together together.

And that brings me to one of my secrets of successful agers…

The Secret: They Have Someone Else Do Their Taxes

If you have prepared your own taxes for 40 years, I am not telling you that you need to stop tomorrow. But at some point as you age—ideally years before you actually need help—consider hiring someone else to prepare your taxes.Not because you can't do them anymore. Do it because someday, someone else may have to manage your financial life.

Imagine how different Sam's February would have looked if Harry and Wanda had started working with a tax preparer five years earlier. Sam could have made one phone call.

That tax preparer could have pulled the prior year's return. They would have known which tax documents normally arrived. They might have noticed that a 1099 they received every other year hadn't shown up yet. They could have helped Sam understand what had changed after Harry's death. Most importantly, Sam wouldn't have been starting from zero.

I Asked My Own Parents to Do This

I believe in this particular secret enough that I have asked my own parents to follow it. My parents are in their late 60s. They are perfectly capable of preparing their own taxes and did so for years. And, in theory, someday I am the person who may have to step in and manage their trust if they can no longer do it themselves.

I have told them repeatedly: Please don't make me figure out your taxes. So my dad recently found a tax preparer.

Does it cost my parents more money than doing their taxes themselves? Yes. Do they technically need someone else to prepare their taxes right now? Probably not. But I am incredibly grateful they're doing it.

Because hopefully my parents will work with this person for many, many years before they ever need my help. And if the day eventually comes when I have to step in, I won't be sitting at their kitchen table in February surrounded by 1099s, trying to reverse-engineer a tax system my dad spent decades managing. I'll have someone to call.

Your Move

If you're still preparing your own taxes, you don't necessarily need to change that this year.But at some point—while you are still healthy, capable and completely in charge of your own financial affairs—find a tax professional and start building a relationship.

And give yourself some time. Good tax preparers can be surprisingly difficult to find, particularly during tax season.

And if your finances are relatively simple, this doesn't necessarily mean you need an expensive CPA or sophisticated accounting firm. Your solution may be establishing a relationship with a tax professional at a local tax preparation service.

You want someone who knows you, knows your tax history and will still be there to answer the phone when the person you chose to take care of you eventually calls.

Because successful aging isn't just about making sure you can manage your life today. It's about building a life that someone you trust can manage tomorrow.

— Jennifer Wallis
Estate Planning Attorney & Creator of Legacy Blueprint

About the characters: Harry (Husband), Wanda (Wife), Sam (Son), and the other names you'll see in Secrets of Successful Agers are pseudonyms I use repeatedly and do not represent the same people from story to story. These stories are inspired by situations I encounter in my work as an estate planning attorney, but names, identifying details, and circumstances may be changed, omitted, or combined to protect client confidentiality. Nothing in this article is intended as legal advice.

Disclaimer: This article is provided for general educational and informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Estate planning laws and individual circumstances vary, and you should consult with a qualified attorney regarding your particular situation.