Do you know if your parents have a plan in place in case of passing or an emergency? Or do they have a plan but no one knows what it is? Aging parents need to establish a plan and communicate the plan (including finances) with their adult kids.
By Aaron McCarter
In our own lives, our parents start and run the money conversations from that first allowance to gearing up for those college loans and beyond. Later in life, the roles are reversed and our elderly parents might need a money conversation about their own future and well-being. Unfortunately, to make that conversation happen, it may be up to the adult children to take the lead.
When you find yourself in this role reversal, the first question you might ask is how do you start “the talk” and get it right?
For a bit of guidance on the subject, you might turn to a Daily Finance article titled “Role Reversal: How to Have 'the Money Talk' with Your Aging Parents.”
You see, late-in-life medical care may require the family to pull together and even offer direct care to their elderly loved ones. In the process, there may be some difficult financial hurdles to clear. In a very real way, it is not only the responsibility for the elderly parent to have planned along the way, but it is in everyone’s interest to identify the financial hurdles sooner rather than later.
Not planning can become planning by default, which tends to lead to some painful consequences.
So, what do you need to talk about and how do you even start the conversation? Take a look at the original article for some issues to parse out, and a few cautionary tales, too.
One of the critical topics is that of long-term care. Statistically it is a very real possibility that elderly parents will outlive their resources due to their need for long-term care. What can be done now to fund that obligation? Is long-term care insurance an option, especially if the children chip in to pay the premiums?
As for starting the conversation: this is always a difficult point, if only because it can be entirely different for different people. That noted, there’s no time like the present to have “the talk” and plan for tomorrow.
For more information in Liberty, MO and the Kansas City Area about elder care planning and effective estate tax planning, and to access free information and tools to organize your estate, visit our estate planning website.
Reference: Daily Finance (December 5, 2013) “Role Reversal: How to Have 'the Money Talk' with Your Aging Parents”