5 Steps for Getting on the Same Financial Page as Your Parents Age
As more and more people in the over-65 age category are continuing to work, it can be easy for Millennials and Gen Xers to forget to have conversations about financial plans with their aging parents. These discussions can be delicate, but they are crucial for ensuring both that your parents' needs are met as they grow older and that any expectations they have of you are made clear (as well as your consent in meeting those expectations).
Here are five important conversations you want to have with aging parents about financial support:
1. Current Financial Situation: Begin by having a conversation about your parents' current financial situation. Ask about their sources of income, savings, investments, and any outstanding debts. Understanding their financial picture will help you gauge their level of financial security and identify any areas where they may need assistance. This conversation can also serve as an opportunity to express your willingness to help and offer support in managing their finances, if needed.
2. Long-term Care Planning: Discuss the topic of long-term care planning with your aging parents. This can include conversations about their preferences for living arrangements as they age, whether they have long-term care insurance, and how they envision receiving care if they become unable to fully care for themselves. Addressing these topics early can help your parents make informed decisions about their future care needs and allow you to plan for any potential financial implications of long-term care.
3. Estate and Inheritance Planning: It's essential to have open and transparent discussions about estate planning and inheritance with your aging parents. Inquire about whether they have a will, trust, or other estate planning documents in place. Understanding their wishes regarding the distribution of their assets and how they intend to pass on their wealth can help avoid misunderstandings and potential conflicts among family members in the future. Encourage your parents to review and update their estate plans regularly to ensure that their wishes are clearly documented.
4. Include Siblings In Responsibilities: All too often, caring for aging parents can fall on the shoulders of one child, even when there are multiple siblings. If the other children in the family live out-of-town and cannot provide as much physical support, have a conversation about ways that those siblings can contribute in different ways (i.e. respite care weekends for when parents might be living with one sibling, financial support if needed, emotional support with video calls & letter writing).
5. Bring Your Partner Into The Conversation: Especially when there are cultural norms around parents living with their children as they age, you want to bring your partner into these conversations as well. Be sure to process these expectations and get on the same page beforehand (i.e. discuss the readiness of having family live in your home).
By having these important conversations, you can work together with the whole family to help your parents feel financially secure and prepared as they navigate the later stages of life.
Of course, sometimes having these types of conversations with family can bring up lots of feelings, fears, and anxieties. Often times, families are not transparent about money issues because they were either taught it was rude, they do not want to be a burden, or they genuinely assumed that their plans were already made clear by cultural norms.
If you, or someone you know, needs help navigating these conversations, give me a call. I am a Licensed Marriage & Family Therapist who works with couples, families, and individuals to communicate effectively and lovingly about money. If I can’t help you, I’ll help you find someone who can!
Available in to help people in Florida or Texas!
Email: DrZepeda@FinancialTherapyTexas.com
Phone: 713-291-9553
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