It shouldn’t take a crisis to learn about your parent’s finances. But it often happens that way. Even for close-knit families, talking about money is not an easy topic. I have found that just as your parents took care of you when you were growing up, there’s a good chance that at some point you’ll need to help them. And with the rising older population, this conversation may even fall upon nieces, nephews, other family members, or friends.
If you’re going to assist your parents or loved ones, you will need a general idea of their wishes and what financial resources they have to see them through the rest of their lives. It is important to understand that such talks go far beyond money. They are discussions of independence and basic preferences on how one wants to live.
Talking about a family member’s finances should happen long before they become ill. The ideal setting for this topic is probably when they initiate the conversation. But since that may not happen soon enough, consider how and when might be the most appropriate time to have the discussion. Possibly instead of a formal meeting, it may be easier and more comfortable to pick a non-threatening time and location like a round of golf, a walk in the park or a family dinner.
If you have siblings, consider getting them involved. If you do go solo, it is probably a good idea to keep them informed.
If discussing lifestyle and health issues, here are some questions to ask:
• Living arrangements. Would moving to a smaller home, a retirement community, or a family member’s home be a better idea?
• Healthcare – What medical and long-term care insurance do they have? Who are their doctors and what medications do they take?
• Legal – Do they have an updated will and durable powers of attorney?
• Records – Where are important papers kept?
It may be beneficial to seek a financial advisor or an attorney to help facilitate this discussion. The needs of your loved ones are too important to leave to chance.
For more information please contact Rebecca Robins, CPA/PFS, CFP®, at 661-222-2331. CA Insurance # 0D75745. Securities offered through Associated Securities Corp., Member: NASD/SIPC. Advisory Services offered through Associated Planners Investment Advisory, Inc., a Registered Investment Advisor. The office of Rebecca Robins is located at 25129 The Old Road, #105, Stevenson Ranch, CA 91381.