Money conversations between adult children and aging parents may feel difficult, but they can be some of the most important conversations to ensure finances are protected and managed responsibly.
Here are key topics to cover with your parents. Or, if you are older, make sure you’ve discussed these subjects with your grown children.
Where to find key documents.
Be sure to share the location of important documents, including bank account information, documentation of any assets or liabilities, deeds, titles, and life insurance.
Plans in case of illness.
In cases where a family member or loved one falls ill, some people choose to give power of attorney to someone they trust. Make sure these plans are in place in the event of illness, injury, or incapacity. Power of attorney is a legal term that refers to the legal right to act for another person in certain matters, such as financial or medical decisions.
Ongoing healthcare needs.
As people age, they tend to have increased and ongoing healthcare needs. It is always a good idea for these needs to be clearly documented and discussed in advance.
Plans for the estate.
It is important to share plans for your estate. Estate is a word to describe all the money and property owned by a person, specifically at the time of his or her death. Some people choose to create a will or trust to identify property in the estate, to whom it should go, and how and who will handle it.