Tips for Talking about Estate Planning

Talking to your parents about their health and finances, and planning for the future, can be a difficult and sensitive conversation. Estate planning, though, is very important for your parents and the rest of the family. 

A 2017 Caring.com survey estimates that 6 in 10 American adults do not have estate-planning documents. This may be because many don’t think they need one, they don’t like thinking about death, or they just haven’t gotten around to it yet. However, estate planning can help prepare the family in the event a family member becomes incapacitated, and it develops a plan for finances and assets to help reduce uncertainty and even conflict for beneficiaries.

When getting ready to talk to your parents, pick a positive, comfortable environment during a period of low stress. Be clear that you just want to make sure the proper plans are in place and understood, and that you are there to provide support and assistance if necessary. It can also be helpful to involve all siblings, and create a plan about their respective roles. 

While meeting with your parents, review their assets, income, and insurance. Talk to them and your siblings about whether or not family members would be willing or able to help out financially if necessary, and review with your parents their insurance coverage options under Medicare.

It’s also important to know where your parents’ critical financial and health documents are, and if able, review them periodically to keep them up to date. This includes their:

• Will – directs who should receive any assets, and names an executor to administer the estate. Also indicates funeral preferences 
• Living will – allows your parent to give specific instructions about the kind of health care treatments they do or do not want should they ever become unconscious or terminally ill
• Location of safe deposit boxes and keys
• Social security numbers
• Birth and marriage certificates
• Deeds to property and cemetery plots
• Vehicle titles and registration
• Sources of income and assets
• Insurance policies
• Contact information for financial advisors, doctors and pharmacies. Talk to your parents about giving written consent to discuss their personal affairs with these important professionals
• List of medications and dosages

If they don’t have one or more of these documents, work with your parents to develop a plan for creating them. You should also talk to them about having an appointed durable power of attorney, which allows a trusted friend or family member to manage finances should the parent become incapacitated, and a healthcare power of attorney, which gives the ability to make medical decisions for the parent.

Some parents may be reluctant to share details of their financial situation or how they plan to leave their assets after they are gone. If this is the case, suggest they make an appointment with an estate-planning attorney and possibly a financial advisor. Then, ask your parents to share with you general details about final decisions so you are aware. 

Knowing your family has a properly prepared plan in place will give you and your parents’ peace of mind. While no one likes to think about their own mortality or the possibility of being unable to make decisions for themselves, you can help protect your family from being caught off guard and unprepared. 

Learn more about AAA Life Insurance options here.

The content of this article is for informational purposes only. AAA does not provide professional estate planning services.