For Boomers and Generation X'ers, you are probably beginning to see the early stages of your parents slowing down or perhaps one of them had a mild health scare over the last five years that got you thinking who is going to take of mom and dad? Before each one of your brothers and sisters rush to put their finger on their nose and scream "NOT IT!", it may be time to have a serious discussion about who will bear the responsibility should your mom and dad need someone by their side for financial or medical decisions. There are several key mistakes that I see families make when it comes to discussing their aging parents' finances.
Who will be the main caretaker for Mom and Dad?
- Since many siblings are strewn across the country, you should have a discussion with Mom and Dad so they know who will be taking the lead for potential items such as power of attorney, medical decisions, or potentially the executor of the estate.
The decision to buy long term care insurance
- Many people assume their parents' have fully reviewed their options when it comes to what will happen should they need long term care. It could be that your parents' have a strategy or even bought a policy. Or, it may be in the best interest of the kids to buy a policy to help protect future inheritances down the road.
Do we know where everything is located?
- It's hard discussing money with Mom and Dad, but more often than not children never reviewed just where everything is physically located should something happen to their parents if they become incapacitated. I highly recommend looking at some electronic aggregation system with an encrypted safety deposit box if you haven't researched it already.
It's not easy asking your parents' tough questions about their money and there is no guarantee that they will actually respond with an open and honest discussion. However, without having any discussion at all you might just find yourself building out an extra bedroom in your house if Mom or Dad run out of money. Before that happens take the ball in your hands and at least have a 24 second shot clock discussion with your parents. It is in their best interest and yours as well.
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