By Antonio Porretta
When you were a child, you relied on your parents for everything. They helped you take your first steps, they were there for you during your first heartbreak, and they helped you move into your first home. As the years go by, the roles have begun to reverse. All of a sudden, you’re the one helping them read fine print or driving them to doctors’ appointments.
Watching your parents age can leave you with so many new responsibilities, but having a plan in place can take a lot of weight off your shoulders in an especially stressful transition. Let’s discuss some legal and financial considerations that will make a world of difference for you and your family.
1. Get That Will in Place!
How many times have you heard a story in the news about a celebrity who died without a will and left their relatives and business partners with a raucous legal battle? Case in point: The battle over Jimi Hendrix’s estate continues to this day (more than 50 years later!) all because he had no will. (1)
While you may consider your family above such squabbles, it’s better not to test that assumption. You never know how large amounts of money will affect people and their behavior. It is important for your parents to have a will that spells out their final wishes, including who will carry out those wishes as the executor of their estate.
This is especially important in situations with blended families. It’s all too common for someone to neglect to update their will and leave an ex-wife or ex-husband as the sole inheritor or executor of an estate. Not only do your parents need a will, but they also need to make sure it’s updated to reflect their current situation and desired legacy.
The importance of double-checking beneficiary designations goes beyond just a will. Make sure your parents have gone through all their accounts, including life insurance policies, retirement accounts, and other savings and verified that their listed beneficiaries are correct.
2. Start the Long-Term Care Conversation
If your parents are over 65, there’s a 70% chance they’ll need some sort of long-term care services in their lifetime. (2) That’s a high possibility that should be taken seriously.
Your whole family needs to come together to develop a plan for caring for your parents when the time comes. Discuss topics such as: Who will provide care for them? Who will pay for the care? Does it make sense for them to purchase long-term care insurance?
All too often, the most responsible or local son or daughter ends up shouldering the entire burden. This leads to burnout and resentment toward the other siblings. Save your family the trouble and proactively come up with a plan that everyone can agree on.
3. Assign Roles and Responsibilities
About 1 in 9 people age 65 and older have Alzheimer’s. (3) There’s a chance that a time will come when at least one of your parents is no longer able to make decisions for themselves. Who is going to make decisions for them at that point, both financial and medical?
While this can be an uncomfortable conversation, don’t avoid it. This is something you need to discuss with your parents and get the proper legal documents in place before they become incapacitated. Having simple powers of attorney written up will save you the trouble of going to court to request the right to help your parents when they need it most. And if your parents are comfortable with it, it would be a good idea to have one or more of their kids added to a bill-paying account. This way, if an emergency situation arises, they can access cash reserves to pay bills and debt payments immediately instead of waiting for assets to be released or legal documents to be enacted.
4. Invest in Your Relationship
While it’s important to have all the proper legal documents in place and have a plan for how to take care of your parents when they can no longer take care of themselves, the biggest regret for most people is simply that they didn’t make the most of their time with their parents.
We all know our time on earth is limited, so we need to spend it investing in those we love. As you watch your parents age, it’s a visual reminder that your time with them is coming to an end. Consider creating a routine to make sure you spend time with them frequently while you still can. Can you make a standing date for breakfast on Fridays or a phone call on Sunday afternoons? Carving time out of your busy schedule for your parents is one of the very best ways to prepare for these final years of their lives.
5. Enlist the Help of a Professional
Writing a will, planning care, and making these critical decisions, especially with all the emotions involved, can feel overwhelming, to put it mildly. And sometimes parents aren’t receptive to these difficult conversations with their children, the kids who at one time needed them to take care of their every need.
In sensitive situations like these, it can be incredibly beneficial to work with an experienced financial professional, someone who knows the ins and outs of latter-year planning and can be a neutral third party in emotional family discussions. At Blackbridge Financial, we are dedicated to supporting, educating, and providing informed direction to each and every client. If you would like help planning for your parents’ future, please email me at [email protected] or call (704) 960-9646.
About Antonio
Antonio Porretta is an independent wealth manager at Blackbridge Financial with over 20 years of experience. He specializes in helping people create, distribute, and preserve their wealth. Antonio received an executive MBA from Saunders College of Business at Rochester Institute of Technology in 2007 and also holds the Accredited Asset Management Specialist (AAMS®) designation. Originally from Rochester, NY, Antonio has been a resident of Harrisburg, NC, since 2007. Outside of work, he enjoys playing soccer and tennis, coaching, and spending time with his wife, Laura, and their children, Cristiano, Victoria, and Matteo. To learn more about Antonio and how he can make a difference in your financial life, visit www.blackbridgefinancial.com.
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Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor. Independent Advisor Alliance and Blackbridge Financial are separate entities from LPL Financial.
This information is not intended to be a substitute for indiividualized legal advice. Please consult your legal advisor regarding your specific situation.
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