Client Best Practices

[Tracey Hall]

Hello,

I have a new client that would like me to pay their family bills and would like to be involved as little as possible. My initial thought is to provide him with a prepaid envelope for him to send me his bills on a bimonthly basis. Once I receive the bills my client would like me to pay his bills online through his checking account. I know many DMMs use the login credentials of their clients when accessing online accounts for bill-paying purposes. I am preparing an authorization form giving me access to his account information but the client suggested having a separate account for me to work from and he transfers money to that account. How do most of you handle this situation and do you have any other suggestions to streamline the process to make it as easy as possible for my client. And how do should I address the risk that someone (the client, a relative, etc.) might later state that they didn’t know that’s what you were doing (especially if something goes wrong, such as fraud)?

Thanks for sharing your insights.

[Anonymous]

Following this discussion.
Julianne Miller
Life Money Management LLC

[Anonymous]

Hello,

Having a separate account and keeping the copies of the bills that will match up to the account transactions should be enough proof that you are not perpetuating fraud. But if other transactions go through the account that you do not initiate, there could be questions.

I keep copies of all the bills and write the date paid and the bank confirmation number on them. One of my clients mails me the bills, another scans them to a shared Dropbox folder. If they are scanned I add a “comment” on the pdf with the date paid and the confirmation number. With the mailed ones, I return them after a few months.

Pat Gundling

[Anonymous]

Is the separate account under the DMM’s business or under the Client’s name?
I assume the business but I haven’t done that yet and may be doing so soon.

[Anonymous]

Not sure if this helps or is what you are asking, but I automate as many of the bills as possible.

For clients that use credit cards (for points, etc.) we flow (and automate) as many of the bills through that card as possible. With others we have set up automatic payments through either their bank accounts where the money is “sent out” (either electronically or by check from the account to pay the bill) or from the vendor side (where the money gets “pulled in” to pay that bill). While I generally have permission and access with my clients if your client does not want to give you access to all of their logins or you simply don’t want them, you can sit with them when setting these automatic payments up and have them do this with your guidance helping them determine which way to pay (via credit card, automate through bank, through vendor site, etc.)

As an example: I have a client in a retirement community and we have automated all of her bills except two: her credit card (where most of her bills are being paid from), which I then pay and her quartely long term care policy (which I can set up some kind of automation, I just haven’t yet for a number of reasons). I have set up duplicate statements to be sent to be sent to me electronically, so I can keep an eye on things. With this particular client I discovered a fraud of $5,000 as a employee of the retirement community was stealing her money using her credit card and checks but I was able to catch it because I was getting regular notifications. So while I’m not immersed in her daily life I was able to keep an eye on things and prevent major issues. (The employee went to jail and the money was returned thankfully).

For me streamlining as much as possible is a good first step.

I hope that helps,

Sincerely,
Alix Longfellow

[Anonymous]

Great questions and answers! In my client agreement I include an indemnity and liability clause and in the confidentiality agreement I state the use of confidential information that the client allows the provider (me) to use. While never 100% guaranteed, this protects me from any misunderstandings between my clients and their families. There are good forms on this website, and if you want to see my specific language, reach out to me directly.

[Author]

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