While speaking to clients regarding their estate plan, the topic of conversation often shifts to … “I wonder if my parents have done any planning?” As we get further into the discussion of expenses – the cost of funerals, burials, cremation, estate administration, etc., I regularly hear … “I am concerned about my parents’ financial stability.” Put frankly, some of my younger clients are very concerned about having to financially support their parents during their later years.
Inquiring about one’s parents’ financial situation is considered taboo and is an issue that causes much anxiety for some children. As uncomfortable as the topic is, the only way to deal with potential problems is to address them now.
Discomfort aside, it is important for families to speak sooner rather than later so that everyone understands what might be on the horizon. Additionally, there may be actions both generations can take now. Parents may be able to readjust their budget, downsize living arrangements, purchase an annuity or long-term-care insurance, or take out a reverse mortgage. Children, if financially able, may be able to assist by paying health or long-term-care insurance premiums, entering into a contract to purchase a parents’ home in order to provide cash for living expenses, or simply provide the moral support needed to implement change.
My clients are often concerned that their inquiries will come across as greedy and eager to receive an inheritance. The could not be farther from the truth. Instead, they are very concerned with whether or not their parents have completed an estate plan and whether or not they have the financial resources to sustain their current standard of living and cover their expenses as they age.
As uncomfortable a topic as financies are, the only way to assess the problem is to have an open discussion. At the very least, I encourage my clients to initiate the dialogue. This will bring it to the attention of their parents that they are concerned.
