Talking to your parents about retirement and end-of-life challenges may alleviate some of the stress that often comes as a result of inadequate planning. Knowing when and how to approach sensitive topics about death may help you navigate conversations with confidence.
One of the biggest challenges of estate planning is assessing the financial obligations that may result as your parents’ age and their health inevitably declines.
Assessing financial needs
Moneycrashers.com suggests some excellent topics to address with your parents that may give you insight into their financial preparation for the future. These include the following:
- What is the extent of their health care insurance coverage?
- How do they anticipate budgeting costs associated with medical treatment as they age?
- What kind of and level of care do they wish to receive?
- Have they considered long-term care insurance?
Establishing financial responsibilities
If you plan to share the financial responsibilities of caring for your aging parents with others in your family, everyone should have a clear description of their responsibilities. If you or others will need to access your parents’ finances to help cover their medical needs, you should have access to their financial assets and understand under what conditions you can legally draw upon those resources.
Establishing responsibilities and issuing guidelines for the care and well-being of your parents is something that you will benefit from addressing long before their health declines. Early and proactive planning may provide comfort and satisfaction to your parents and simultaneously boost your confidence in your ability to afford to take care of your parents when the time comes.
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