While it may be difficult, it is important to have financial conversations with your elderly parents. These conversations are important because they will best prepare your family to cope when a parent loses the ability to handle his or her money and other affairs. A recent article discusses several issues you should be sure to discuss with your parents.
The first essential portion of the conversation concerns legal considerations. It is important to determine whether your parent has an estate plan in place. Ask what documents he or she has executed, and who his or her attorney is. It is also important to know where these documents are located so, when they become necessary, you can retrieve them quickly.
Another essential portion of the conversation concerns healthcare. Ask your parent what type of medical insurance he or she has, and what kind of coverage is provided. Additionally, ask whether he or she has executed a healthcare power of attorney and a living will. These documents are vital, as they allow your parent to retain some form of control in the event of incapacity.
Finally, discuss income and expenses with your parent. Determine whether your parent has executed a financial power of attorney. This person should know what bills your parent has, as he or she will be responsible for taking care of them in the event of the parent’s incapacity.