Preparing for a Parent Emergency
Each year, our financial advisors launch an ‘Annual Renewal’ with clients. We discuss, what does money allow you to do? What should we focus on for this year? Are there any changes with children, parents, etc that you need help thinking through?
A big theme we saw this year was parents reaching their 70s and the implications of what could happen to them. What would happen if they have an emergency? Where would we even start?
Your parents may have an estate plan (wills, trusts, etc) but do you know anything about it? Who has it? Who is the executor/in charge? What part do you play in it?
An estate plan isn’t fool proof. Beneficiaries still need to be listed. Accounts still may have auto-pays coming from them. There is certainly more to a life than 50+ pages of legalese.
So how do you give your parents – or your partner – a leg up in an emergency?
This is a great question our Paraplanner, Alex Smith, is pondering for our clients and himself. There are so many blogs or kits out there on ‘Legacy Binder’ or ‘Death Letter’ and boil down to similar components:
What you want for your family
Not everything is in an estate plan. Start with your hopes and dreams for your family. Did you create a tangible asset list for your will? If not, consider sharing who you’d like certain items to go to.
Where to go for help
- Contact info for lawyer / advisors
- Contact info for current employer HR department
- What custodians / banks you have accounts with
- Lastpass or 1Password account(s)
What needs to be paid
- Monthly bills to expect
- A list of what is on auto-pay
- Loan agreements / statements
- Where deposits come from (Pension, Annuity, etc)
The legal jargon aka financial documents
- Car title(s)
- House deed(s)
- Estate plan documents
- Powers of attorney
- Insurance policies
- Copies of keys to any tangible safe drawers/safe deposit boxes
Do you feel like you can start this conversation with your parents? It can be hard, especially if parents do not wish to be a burden on you or are afraid of judgment based on where they are in their life.
How can you make a baby step in the right direction?
Alex recommends reading Mom and Dad, We Need to Talk: How to Have Essential Conversations with Your Parents About Their Finances by Cameron Huddleston
If your parents do not have an estate plan or an advisor, consider gifting them some time with a financial advisor. There are so many great firms available now that can do hourly planning work or project based work. XY Planning Network has a great Find an Advisor portals to review for the right fit.
We are all on a journey. Step by step.
The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.
