My parents are older, my mom sometimes reminds me of this and then, proceeds to tell me that they will probably be gone by the time I am a little older than she is now. Every time they go away without my brother and me, she runs through a list of instructions ‘just in case something happens’, who to call, where the will is, what to do first.
Unfortunately, there comes a time in everyone’s life where they must experience a loved one’s passing. The inevitable reality of experiencing your parents’ passing can seem like a morbid topic and an uncomfortable conversation to have. But without documented plans for your parents’ end-of-life expenses, you may wind up scraping together your own cash to cover the costs. That is why discussing things and having an estate plan in place can and will ease the stress when the time comes.
When parents die, it’s often up to their children to manage not just their grief, but also the many financial tasks that follow. Having the conversation now when everyone is healthy and able will eliminate a huge amount of stress when the time comes. Here are a few ways you can begin the conversation:
Approach this conversation with sensitivity and respect. Personal finance and mortality are uncomfortable topics for many people. Especially now, when your parents are suddenly being asked to discuss both money and death with their kid. Your parents have likely attended many funerals in their lifetime, which means they likely have an idea for what they would want for their own end-of-life ceremony. Consider asking about those experiences when starting the conversation and/or ask how other loved one’s end-of-life care was handled.
“Make it a planning and preparation conversation,” says Schrader, who’s also a financial planning strategist at TIAA, a retirement-planning organization. “It’s not as much about the numbers or ‘how much do you have in these accounts?’ but ‘what accounts do you have, and how can I help if for some reason you couldn’t be there?” – Millennial Money: Learn your parents’ financial plans ASAP written by Laura McMullen
What else should be included?
While having this conversation, ask if your parents have a Power of Attorney for finances. This is a legal document that names someone who can make money decisions on their behalf if they are unable. Also ask if they have similar documents for medical/health care.
If your parents die without a will, intestate law determines who gets their stuff which means the distribution may not be what they wanted. If your parents (or you, for that matter) don’t have an estate plan, consider looking for an estate-planning attorney or a low-cost will service. Remember, an estate plan not only explains where the money goes, but it covers all your end-of-life wishes.
If you would like to discuss this in more detail, please don’t hesitate to contact us.
Have a great weekend,
Paige
Article written by Paige Marshall.
Reviewed and approved by Tracey Marshall.
Source:
https://www.fidelity.ca/en/investor/investorinsights/learn-your-parents-financial-plans-asap
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