As your parents age, it is important to prepare for their future needs and have proactive discussions about their finances and financial planning. Our partner Senior Care Lifestyles, LLC have put together this handy list of 10 financial questions that need to be asked. You can read the full article here.
Do they have a
durable power of attorney?
This may be the first
and most important question to ask if you anticipate being in charge of your
parents’ finances in the future. Without a durable power of attorney in place,
it will be much more difficult for you to access accounts and private
information if they are suddenly unable provide you access.
Where are financial records kept, and are they up to date?
If the location of
important financial records is confidential, you will need access to this
information sooner rather than later. Making sure that you are aware of these
locations will save you trouble down the road should you need to access them
unexpectedly.
What financial institutions do they use and what are their
account numbers?
In addition to being
able to access financial records, you will also need access to all financial
accounts. Are you aware of all bank accounts, account numbers, mortgages, and
investment information? Now is the time to find out.
What are their monthly expenses, and how are these currently
paid?
As the designated
person handling these payments in the future, it’s important that you’re made
aware of all monthly expenses so that no payments are left to fall behind. If
bills are automatically paid each month, you need to know that too.
What is their annual income and where does it come from?
How much money is
coming in each month to be used towards the aforementioned expenses? Look into
your parents’ income so that you’re made aware of all pension money, investment
information, or government assistance money.
What is the full extent of their medical health insurance?
The full extent of
each parent’s health insurance, whether provided by an employer, government
assistance program, or other source, should be made clear to you so that you’re
not left muddling through paperwork if and when you are in charge of providing
them with the best possible care.
Do they have long-term care insurance or a similar plan if
long-term care is required?
Not all health insurance
plans cover the cost of assisted living or similar long-term care options. Now
is the time to help your parents navigate their options and set up a financial
plan for any future long-term care that is needed.
Do they employ an accountant or financial planner?
If there is another person assisting your
parents with their finances, you need to be made aware of this, and know how to
contact and work with this person.Do they have a will or living trust?
Whether your parents
have chosen to specify the desired distribution of their assets in a will or
wish to leave their life’s savings in a trust, you may be put in charge of
tending to these specifics in the event that one or the other becomes suddenly
ill or incapacitated.
What are their end-of-life wishes?
Along the same line as above, it is important to
discuss with your parents how they feel about end-of-life care. While these
conversations may be sad or difficult to have, it’s better to have them now,
when together you can sketch out a plan, than find yourself alone and
unprepared in the face of an unexpected illness.