“Do you expect your parents to leave you a financial legacy? Nearly half of working-age Americans assume that they will receive an inheritance that will support them later in life, according to a survey by financial services company HSBC. Perhaps the bigger question, though, is how to even approach this topic with your parents.”
How do you ask your parents about their estate planning? No matter how you slice it, it’s a touchy subject to bring up.
You don’t want to come off as greedy when asking your parents about their estate planning. However, you may need answers to certain questions to ensure that their financial wishes are carried out and there is a smooth transition of wealth and assets.
Yahoo Finance’s recent article entitled “How To Talk to Your Parents About Their Estate Plan (Without Making It Awkward)” shows us how to approach this touchy subject and get the info that you need.
Begin by asking your parents about whether they have an estate plan. You can tell them that they don’t need to share the numbers and that you just want to be able to follow their instructions. A good way to start this conversation is to acknowledge how awkward and difficult this conversation is for you. You should emphasize that you don’t want to think about their deaths but are just trying to sort things out.
Experts say that you’ll likely get a better reception from your parents if you let the conversation happen organically and not schedule a time to talk. No matter how you approach the topic of an inheritance from your parents, the objective of the discussion is to make certain they have a plan in place, so there will be a clear path for whoever is left behind to go forward. You can start by asking if they have these key legal documents:
- A will
- A power of attorney; and
- A living will or health care directive.
Ask where your parents keep these documents and how you can access them, if necessary.
You should also ask if your parents have written funeral or burial instructions. You also need to ask them to give you other important information, so you can handle their finances if they are unable to or when they die. This includes account numbers and passwords, insurance policies, information on their retirement plan or pension administrator, as well as the contact information for their accountant, attorney, financial planner, or other financial professionals.
If you have any questions about your current estate plan, please call or email us today.
Reference: Yahoo Finance (Oct. 7, 2020) “How To Talk to Your Parents About Their Estate Plan (Without Making It Awkward)”