Assisting aging parents with their finances can seem like a daunting task. Discussing finances is an uncomfortable topic that many put off or completely avoid. But it is important to have these discussions, so you know your parents’ wishes and you are prepared to step in when they need help. In this article, we will discuss four financial areas you should go over with your parents.
Discuss Their Estate Plan
An important part of assisting aging parents with their finances is discussing what type of estate planning documents they have in place. It is vital that they have certain key documents. A complete estate plan should include such documents as a revocable living trust, a durable financial power of attorney, and health care powers of attorney. If they have these documents in place it will be an easy and seamless transition for you to have access to their accounts and assist them with their finances.
Assemble Key Information
It can also be very helpful to have your parents assemble a list of key information. This list should include items like bank account information, insurance policy information, and logins to vital accounts. Have them store the list in a safe place in their home that you know about. This will help you tremendously by giving you the information you need to help take over caring for their finances. Remind them that the more information you have, the easier it will be for you to help them when they need it.
Helping from a Distance
If you do not live nearby your parents, it can present another layer of challenges. Fortunately, there is something very simple you can do that will make helping them simpler. That is to assist them in setting up autopay. Go through their regular bills with them and help them set up autopay. You will also want to make sure you can access those accounts if necessary.
Set Up Long-Term Care
It is a hard discussion, but it is important to learn what your parents’ wishes are if they require some form of long-term care. Taking care of this early on will greatly help reduce stress in an emergency. You will also need to find out if they have a way to cover the costs of long-term care. If they do not, you may need to help them purchase a long-term care insurance policy to help cover those expenses.
Successfully Assisting Aging Parents with Their Finances
Successfully assisting aging parents with their finances is possible. But it takes planning on behalf of the children and parents. If you put the time aside now to solve these challenges, you will be better prepared to help your parents in the future.
Questions? Want to schedule an appointment? Contact us by clicking here.