Let’s face it, daughters tend to be the caregivers for their parents finances when they get older and need some assistance. Daughters are are very protective of their family and want to make sure their elderly parents are taken care of, personally and financially.
As the sandwich generation, daughters love their children unconditionally and worry constantly about their parents. No matter how difficult it can be, daughters need to talk to their parents about their finances. Here are five things daughters need to know about their parents finances.
Do Your Parents Have A Will?
The first thing to check is the will, which is a sensitive subject. But, does the will say anything about life insurance, IRAs, 401K’s, or stocks and bonds? What if this was all left out? Or something had been changed, updated, or even cancelled? Old information is not helpful. Work with your parents to update their will, check every single thing that is important and document it.
The second step while checking and documenting items for the will is important, insurance. Do your parents have life insurance? What type of insurance is it and the amount? Call the insurance company to verify everything. Will the amount of the insurance cover what bills your parents currently have? Add up those bills and see what can just be paid off by consolidating them.
Owning Their Home
The third step is the house they own. If your parents own a house, is there a loan against it or a mortgage? Now, let’s see about paying it off. Depending on the type of life insurance, your parents could take out a loan and borrow against it as the amount borrowed could save money. The reason is the interest rate. If your parents are barely getting by, this type of loan is different. Knocking off that interest rate could save thousands of dollars.
The fourth step is their medical bills. Will the life insurance be enough to pay this off? If one of your parents had to go to a nursing home, have dialysis or home health care, is there a clause in the medical insurance that will provide this care for your parents? This is important! Read the fine print, check the deductibles, and see what really is covered. Do they have long term care insurance? Will that cover their expenses when they get older.
The last tip is estate planning, if your parents are still young enough to doing this. Estate planning is for the house, insurance, saving money for retirement, and even budgeting money every month. A daughter may have to teach her own parents how to do this or help them hire a trained professional.
A daughter needs to know about her parents finances and prepare for the future. You may end up having to pay off any outstanding bills. If your are appointed the executor, you may find it very difficult unless you and your parents have sat down together and gone over everything. Old age sometimes creeps up on your parents before you can get things straightened out. It is wise not to be caught unprepared.
I am happy to have a consultation with you (and your parents) about these needs and how we can help. Please give me a call today to find out more! Pat 303-919-1020