These hard economic times are hurting everyone in the entire world, but your parents are special to you. Have you really stopped to listen and look at your parent’s finances? How do you talk to your elderly parents about money?
Talking to your parents about their finances can be difficult and you can feel like it is none of your business, but it has to be done. Just be gentle and firmly set your foot down and have them understand that you have their best interests at heart. Everything should be laid out on the table.
For example, there are estate taxes. Inheritance and estate taxes can eat up their legacy if paperwork is not done correctly, meaning the kids would have to pay for this with money they do not have.
Medical bills that are not paid or unpaid mortgage payments may fall to the next of kin. If your parents have an outstanding mortgage on their home, it is not automatically paid. Many parents do not realize that if the life insurance does not pay off the loan, someone has to pay the balance.
Most of the time the bills are usually paid off with the insurance money. Then, what amount is left? The house would have to be sold with no choice in the matter. What about property taxes, how much are they every year? If the house is to be kept in the family this is very important.
Make a list of all the bills your parents have. What is important and what is not necessary. To them if they are important in their life and to you it is frivolous then help pay for the bill. For example, if they really cannot afford the cable or internet bill every month, help them out. Internet keeps them in touch with the family and keeps their brains active by doing something every day. It keeps them busy and keep them younger longer.
Check everything and be prepared to talk with your parents about money, from the will to the life insurance to the bills to even the burial. These are all tough topics, but at the end of the day, your goal is to have as much quality time with them as possible and planning ahead can help make this a reality!
If you would like a professional to sit with you and your parents, going over your options, give me a call today! I will be happy to meet with you all and find out what is best to keep them safe and secure – 303-919-1020.