Question:
I’m about to have “The Talk” with my elderly parents about their future—financially, health-wise and of course, their final wishes. Can you give me some guidance on the types of questions I should be asking them?
Answer:
We are glad to see you taking the initiative to address these issues with your parents before it is too late. It is a responsible move to have plans in place should something happen.
You should know which financial institutions they use, including their bank and the custodian for their brokerage accounts. You should ask where their accounts are, the account numbers, any passwords and online access they might have. We recommend using a document organizer to consolidate the information. These organizers have you list the financial information, and the contact information for their financial and tax adviser, as well as their attorney. They also provide a place to document where other important documents are held, such as, insurance policies, wills, letters of instruction, a separate password file, etc. You should check to determine if your parents have a safe deposit box, what documents are kept in the box, and who has access to it. We suggest that you know where your parents keep past tax returns, as these documents can be a great resource of information when settling an estate.
You may consider going with your parents the next time they visit their financial adviser or C.P.A. to introduce yourself. You can become familiar with the plans that they’ve developed for your parents. A good financial adviser will likely know who your parents use for their tax planning and preparation and their estate planning attorney and the plans these advisers have in place. Ask if they have a financial power of attorney should they become unable to make financial decisions on their own.
When speaking with your parents, familarize yourself with their insurance coverage. You should ascertain if they have any Medigap or other supplemental insurance in place, including long-term care policies. If they do not have long-term care policies, be aware that obtaining one may become cost-prohibitive as they become older or if their health deteriorates.
When talking about their health care, you should ask about any health care directives their estate planning attorney has prepared. These documents should have instructions, or their wishes, for life-sustaining measures should your parents become incapacitated. You may also ask if your parents have preferences for burial, cremation or if burial plots have been purchased.
At Henssler Financial, we believe you should Live Ready, and that means being prepared to help your parents should they become unable to care for themselves. If you need help discussing family finances with your elderly parents, the experts at Henssler Financial are here to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
