Navigating Nest Eggs: Your Folks and Their Finances

Money and your parentsNo matter how old you are, you're still your parents' child. Someday, however, they may need to rely on you for help when it comes to their finances. With an aging population, loved ones must grapple with how to help their elderly parents manage their finances. Regardless of whether you and your parents have always talked freely about money or never discussed the subject, there are several considerations you may want to address with them as they approach their later years.

A recent article in The (Manchester, NH) Union-Leader, titled “Helping parents navigate their finances as they get older,” recommends a proactive approach as the best way to broach this delicate subject. Starting the conversation can be difficult for some, but waiting can cause even more headaches. For example, there are an increasing number of scams targeting our seniors. You want to be ahead of the curve to protect their nest egg and your time.

Take an inventory of their finances to get a baseline understanding of their financial situation, including a list of brokerage and bank accounts, insurance policies, and titles to their home and autos. See whether they are paying their bills on time to help you determine the extent of your day-to-day involvement in the management of their affairs. Obtain copies or know where they keep important documents like their Social Security cards and birth certificates. Your parents should give you the contact information for their CPA, financial advisors, and estate planning attorney.

The original article suggests that you simplify wherever possible, like using online bill paying. If your parents are not comfortable with a computer, ask a trusted family member to assist. The goal is to streamline and to provide some monitoring of their accounts for suspicious activity.

Check into your parents’ estate planning. This should include, at a minimum, a will, financial durable powers of attorney, health care durable powers of attorney, and a living will. If they don't have these documents in place, the probate court will make the important decisions, which can be costly and time-consuming. An estate planning attorney can help draft the appropriate documents and review their existing documents. In addition, the beneficiaries designated on your parents’ life insurance policies, IRAs, qualified accounts, and pensions should be coordinated with their estate planning documents and overall intentions.

This article is a nice starting point to help your parents. There are many family dynamics at play with these conversations, so beginning earlier will help everyone; delaying these conversations can cause more anxiety and headaches. Talk with an experienced estate planning attorney and make sure you’re totally prepared.

You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.

Reference: The (Manchester, NH) Union-Leader (February 14, 2015) “Helping parents navigate their finances as they get older”

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We've been putting together as many resources as possible so that we can continue to help:

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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.