Long term care and financial issues have many caregivers scrambling at the last minute to sort through documents and services. By having open discussions with aging parents now, you can help to improve their financial health, reduce potential problems and ease burdens in the future. The following tips from Radon Stancil, CFP® and Rick Parkes, LUTC of Diversified Estate Services, LLC should help to make that conversation easier and more productive.

1. Pick the right time to talk. You want to make sure to have the conversation when you won’t be interrupted and when everyone is relaxed. Having this discussion during the holidays may not be the best time. You also might want to cover things in more than one conversation.

2. Maintain a sensitive stance. Don’t be judgmental of your parents. Remember, this is a difficult subject for them to discuss. You may not agree with their decisions, but keep in mind they are competent adults. A good way to set the right tone is by saying, “It’s important for me to understand your finances in case I need to help you in the future.” You could even begin by discussing your retirement strategy or plans in the event of your own serious illness or death. This helps to open the door to communication and makes it an interactive conversation where they don’t feel they are being questioned.

3. Involve an expert if needed. There are many resources available, such as financial planners and certified public accountants, who can help manage later life decisions and financial issues for families. In some cases, it might be easier for your parents to talk about these matters with an outsider than with a family member.

4. Make a list of assets and liabilities. This is an important place to begin once the conversation starts. You’ll want to note the date and cost of assets, as this information will be needed for tax purposes if any assets are sold.

5. Establish arrangements for financial management. Your parents will want to consider establishing a durable power of attorney. This is a legal document that enables someone to designate another person to act on his or her behalf should they become disabled or incapacitated.

6. Know where important documents are kept. Make a list of all important documents, including birth and marriage certificates, wills and trust agreements, Social Security records, burial instructions, insurance policies, bank and investment statements, mortgage and real estate deeds and auto ownership records. Be sure to get bank information, including safe deposit box number and key location. Also make a list of important contacts with phone numbers such as financial advisors, doctors and attorneys.

7. Review estate planning and investments. If they haven’t done so already, encourage your parents to develop a plan to maximize their legacy for their heirs. Also be sure to discuss their investment strategy so you have an understanding of their financial well-being. This will help you plan ahead for any assistance you may need to provide down the road.

8. Understand your parents’ healthcare wishes. You’ll need to know where your parents stand on healthcare issues should they ever become incapacitated. If that should occur, long-term care planning is essential. Depending on their situation, long-term care insurance may be appropriate to help absorb the costs associated with nursing homes or at-home care.

For More Information Provided by AGIS:

Legal & Financial
Guardianship
Planning for long term care

Filed under: AGIS, Estate Planning, Long Term Care