My mom, 65, inherited $450K when my dad died — but now she’s hooked on slots and burning through the cash. How can I protect our family’s assets before it’s too late?

Signs your parents may need help with their assets

Aside from the possibility that a parent may be squandering their money, there are other red flags you should consider when it comes to helping them manage their finances in their later years.

For example, seniors are often the prime target of fraudsters. Common tactics may include mortgage loan scams, electronic “phishing”, threatening phone calls, and online dating cons, among others.

Even if you don’t think your parents are susceptible to fraud, have an honest conversation with them anyway about possible signs they should look for and the methods commonly used.

Additional signs your parents may need an assist in safeguarding their assets include, evidence of unpaid bills, unusual bank account withdrawals, or spending large amounts of money, such as the aforementioned gambling, or gifting it to unexpected people.

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Put the money in a trust

If your parent recognizes that they have a spending problem, but can't — or won't — stop, see if they might be willing to take other steps to protect some of the money, such as putting it into a trust and naming a trustee to manage the funds.

An estate planning attorney can assist you in setting up a trust that allows your parent to receive steady income, while also not squandering the inherited funds.

With some trusts, you could become the trustee who delivers the funds on a set schedule, or you could choose a dependable third party. It’s all contingent on if your parent agrees and what level of involvement you, and your parent, feels is best.

Trustees must act in the best interest of beneficiaries by law. Your parent could be one of those beneficiaries, as well as other family members depending on how you structure your trust.

This solution ensures the funds are preserved and the money isn't mismanaged during your parents’ lifetime.

Consider an annuity

If a trust is too complicated, or simply not an option at this time, you could also encourage your parent to invest the money in an annuity that provides fixed-dollar income payments.

Annuities are not for everyone. There are often additional costs and higher fees associated with them, and they can make accessing your money more complicated.

However, they can also provide guaranteed lifetime monthly income and they're undoubtedly a better choice than allowing your parent to squander the entire inheritance only to be left broke.

With an annuity providing income, you could make sure that your parent receives a regular, steady stream of funds to cover basic necessities while preventing her from spending the entire inheritance too quickly.

You should always consult with a financial professional before going this route, though, to make sure the annuity you buy is right for your situation.

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Find them a good financial adviser

If you’ve exhausted all your suggestions, it’s possible your parent doesn’t feel comfortable taking financial advice from their adult children.

Do some research on their behalf and set them up with a solid financial adviser who can review their savings and help them land on their feet with regards to the inheritance.

This doesn’t mean you’re removing yourself from the picture entirely. But if you’re not comfortable choosing investments for your parents, this is where an adviser can step in.

Maintain separate finances

Ultimately, any of these solutions will require your parents to be receptive to your assistance. If your parent does not want your help in protecting their inheritance, there is really nothing that you can do.

In this situation, you should take steps to protect your own finances so your parent doesn't become dependent upon you if they spend all the money they have.

Although it may be tempting to convince your parents to combine your accounts all together for the sake of convenience, things can get messy.

Instead, make clear to them what financial support or assistance, if any, you'd be willing to provide in the future and that you won’t jeopardize your own finances to bail them out of trouble.

It can be really hard to see a parent make financial mistakes, but dooming yourself to money troubles to bail them out is only likely to make the situation worse.

Help them to see what life would be like without their inheritance, and hopefully this will encourage them to accept your help in preserving their assets.

Talk about consolidating financial responsibilities. You can help them set up direct electronic deposits for any income they receive. It may also be worthwhile to get them set up with automatic bill payments to eliminate the need to write checks or line up at the bank.