When to have a discussion about finances with your parents
We often work with families where children are caregivers for their parents. Inevitably, the conversation of finances comes up. This is often a difficult and awkward discussion.
Recent studies by a variety of financial institutions showed that almost two-thirds of parents and their adult children1 are at odds as to when detailed conversations on key financial topics, including retirement preparedness, eldercare and estate planning, should take place.
Even more concerning, is the gap between parents concern and their adult children’s concern about finances. Studies show that about 55% of adult children worry about their parents finances vs. only about 25% of their parents. The rising cost of health care and senior care is now a cause for major concern. It is a fact that we are living longer but more often than not, our elderly loved ones will require long term senior care which can cost up to $100,000 per year.
This is part of a continuing series of articles and helpful tips and insights into senior care and senior transition services by Nick Santoro and Joe Santoro of Personal Property Managers (www.personalpropertymanagers.com ) Personal Property Managers specializes in senior transition services such as downsizing, content clean out and removal, estate sales, full service real estate and property sale and moving.
We have learned that these discussions [between parent and adult children] aren’t always easy, but there can be real emotional and financial consequences when they don’t happen. It’s important that families take the time to sort through important matters related to retirement preparedness, care giving responsibilities, estate planning and the tax implications of an inheritance.
Census figures and recent studies indicate that in the next 11 years, our elderly population will double. This means that caregivers and children of elderly loved ones will be dealing with a situation that for many, is something that we are totally unprepared for.
How to Build a Better Discussion
• Start the conversation and ask as many detailed questions as you can. 93 % of parents who had detailed discussions with their children about wills and estate planning say it brought greater peace of mind; 73 percent said it would help their children’s emotional state of mind, too.
• Parents should have final say. While family members should have a role in the planning process, make sure the ultimate decisions made are consistent with the wishes of the parents, who are charting the course of their retirement.
• The right people and the right topics. Advanced planning can help you define roles, determine what conversations to have, and choose when and how different people will be involved. For example who will have the power of attorney or be the executor of the estate? It is important to consider the personalities of each child, their proximity and their relationship with their parents.
• Follow-up and keep the dialogue going. These conversations are not “one and done.” Keep the momentum going and schedule as many get-togethers as you need—and revisit the plans you make at least annually, to make sure they still make sense.
For more information on helping seniors in transition or home downsizing please contact Nick Santoro or Joe Santoro of Personal Property Managers at http://www.personalpropertymanagers.com or simply give us a call at 215-485-9272 or 908-368-1909. Personal Property Managers specializes in helping to transition elderly ones from their home of many years into senior care communities. Personal Property Managers services Pennsylvania and New Jersey and offers downsizing services, estate sales services, home staging, full service real estate services via its association with Every Home Realty to help sell homes with proceeds going towards paying for the long term care of elderly loved ones and moving services