However, you can assist them in financial matters with making them uncomfortable about it. It doesn’t have to be very formal. Be creative about it. Sit down with them and casually open up a dialogue. Assure them that they are in control of their estate while providing them the assistance they need.
Here are some things to consider as you initiate that informal talk.
Respect. Respect is about being sensitive to your parents’ emotions. Don’t make them feel that along with their fading strength is their weakening financial independence. A right approach is important to prevent any resistance to the assistance you want to offer.
Financial Documents. Help your parents locate the financial documents that bear on their financial planning. Some of these pertinent documents would include social security records, insurance policies, mortgage information, birth certificates and marriage contract. Include important information like account numbers, PINs, safety deposit box combinations and others.
Financial Tracking. Make a simple cash flow which would provide your parents with a picture of their cash inflows and outflows. Note the sources of their income which might include pensions and other state-provided assistance. Their expenses might include utilities, mortgage payments, credit card payments and personal expenses.
Estate Documents. Know from your parents if they have a will and other related documents like power of attorney. Know where the copies of the documents are kept. Ask your parents to execute a health care power of attorney. They should appoint who should manage their finances in case of disability and incapacity.
Financial Advisor. If you think you cannot handle the complexity of your parents’ financial condition, you might want to seek the help of a financial advisor in their favor.
Red Flags. As you go along, help your parents identify anything unusual which we would call red flags. This might include suspicious bank transactions, large charitable contributions, and collection notices.
Above all, timing is very important. Be sure that they are ready to engage in a discussion.