Discussing finances with your aging parents can be upsetting. You may have difficulty broaching the subject because you don't want to seem concerned about how much money your parents have. On the other hand, your parents may fear you are trying to interfere with their lives. Yet, if you wait until you must take control of their finances and they are unable to assist you, you may have a tough time finding all of their financial records or determining what their specific desires are.
Start by involving your entire family in the discussion and by stressing that you are concerned about their future well-being. There are at least four areas you will want to address:
- A listing of assets, liabilities, and income sources. A complete listing of these items, including the location of important documents, can save countless hours of searching. Indicating the date of purchase and the purchase price of all assets is also helpful.
- A durable power of attorney. A durable power of attorney will allow a person designated by your parents to take control of their financial affairs in the event they become incapacitated. If your parents are concerned this individual will assume premature control, suggest they leave the document with their attorney, who will deliver it to the appropriate person when necessary.
- A health-care proxy. This document allows your parents to delegate health-care decisions to a third person in the event they are unable to make these decisions. Often, the document will outline which procedures should be used to prolong life.
- A will. A will ensures your parents' assets are distributed according to their wishes rather than according to state formulas.
If you'd like help dealing with your parents' finances, please call.