These talks are tough, but theyre also really important.
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3 Financial Planning Conversations to Have With Your Parents
It isnt all about money.
Consider the time, place and people you want involved in these talks.
When you are ready to talk, consider starting with a one-on-one conversation.
Involving other family members or spouses might make the situation stressful or derail the talk entirely.
The good news is the questions you oughta ask are simple and straightforward.
They are the catalyst for launching into critical conversations that every family should have before its too late.
Whats Your Money Situation Look Like?
Your parents might be great at managing their money.
Or maybe they used to be, but now, youre not so sure.
As our parents age, they may struggle to keep a handle on their personal finances.
Bills can get overlooked.
Taxes might not get paid on time.
Simple forgetfulness can lead to major financial headaches, and our cognitive abilities naturally decline with age.
Older adults may also be more susceptible to fraud and scams.
You dont need to know specific dollar amounts at first to launch a meaningful conversation.
If they went into the hospital, who would confirm the bills got paid on time?
Another difficult topic is long-term care planning.
This discussion is about more than money.
It involves figuring out where your parents will live in the future and who will take care of them.
Discuss the pop in of care your parent wants if it becomes too difficult for them to live independently.
Others may eventually require 24/7 care in a nursing home or assisted living facility.
Learn about your parents preferences and talk to them about how much each option could cost.
It can be challenging, but listen to your parents and hear them out.
Dont start the conversation just to impose your own viewpoint and opinions.
They might feel like theyre losing their independence, especially if theyre having trouble performing activities of daily living.
Patience and compassion can go a long way in these conversations.
However, the price of a policy could be cost-prohibitive if your parents are older or in failing health.
Or you may need to consider hiring a part-time health care professional to help out.
Find out whatlong-term home health care servicesMedicare covers and what assistance you may need to pay for out-of-pocket.
Its always important to consider what will happen if your other parent or their current spouse dies first.
When Insurance Falls Short…
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
If you have siblings, its important to get on the same page with them.
A child who lives far away can feel excluded from important decisions or guilty for not helping out more.
Its important to talk about any imbalances, Keckler said.
One might be able to pay for more than another.
Acknowledging this can help.
Give each other credit for different types of support and care for the parents, Keckler advised.
Are Important Estate Planning Documents in Place?
If your parent dies without one, the state decides who receives their house, car and other belongings.
If your parent recently remarried, their spouse will likely inherit everything.
This may or may not be what your parent wants.
Family dynamics are complex, and dying without a will can unearth the ugliest side of human nature.
It can leave loved ones confused and disappointed at best and locked in hostile litigation at worst.
Its best to avoid the mess by having an open dialogue with your parents now.
First, ask if they have a will.
If they do, find out where it is and when it was last updated.
Doing so can invalidate the entire document.
Many states offer legal aid resources for the elderly or qualifying low-income individuals.
To save money, ask for estimates from lawyers and get quotes from a few different firms.
Always ensure to take advantage of free consultations.
These documents appoint someone to manage your parents affairs if they become incapacitated.
They also describe the end-of-life health care your parent wants or doesnt want to receive.
Its also essential to ask your parents if they have any life insurance policies in place.
Insurance can help pay for long-term care, final expenses and burial costs.
Check to verify these documents are up to date and contain your parents current wishes.
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Making sure everyone feels valued and heard is key.
Its important not to wait until something forces these issues to start the conversation.
What should you talk about now, and what can wait?
Other advice:
Involving an objective third party is another way to break the ice.
Overcoming your apprehensions and getting started is a great first step and youll be glad that you did.
Senior writer Rachel Christian contributed to this report.
