Planning for a Smooth Transition Through the Ages
Planning for a Smooth Transition Through the Ages
Aging is unavoidable, and eventually, the need for support and transition becomes inevitable. If you're fortunate, the shift occurs gradually. However, without proper planning, it can happen suddenly and feel overwhelming. Here are some tips to facilitate a smoother transition for everyone involved.
PARENTS AND GRANDPARENTS: PLAN AHEAD
Discussing topics like money, health, and living arrangements with your children or grandchildren is often overlooked, yet these conversations are necessary. The goal is to be prepared in case of an emergency, allowing you to avoid making critical decisions in stressful situations like an ER visit, following a fall, or during emotional turmoil.
How to be proactive:
Establish Legal Documents. If you haven't done so already, create a will, power of attorney, and healthcare directive. Most states provide a standardized legal format, often with accompanying questions. Go through this document with your children; it may feel awkward, but they may need to fulfill your wishes one day. Without these documents, your children could face costly and lengthy legal challenges to act on your behalf.
Provide an Overview of Your Finances. Start with simple steps, such as compiling a list of your accounts and passwords that your children can access if necessary. They don’t need to know every detail, but having enough information and understanding about your resources, debts, and insurance is essential.
Clarify Your Preferences for Care. Do you wish to remain in your home as you age? Would you consider assisted living? Who do you trust to make healthcare decisions if you’re unable to? What funeral arrangements are appropriate?
CHILDREN: START CONVERSATIONS EARLY
Initiating discussions with your parents about their needs isn't about taking control; it's about being prepared to assist them later down the road. Ideally, your parents would bring these topics up periodically, but if they haven't, you may find that you need to take that initiative.
Ways you can help:
Understand Their Wishes. Find out where they would like to live if staying alone becomes unsafe and what type of care they prefer. Alternatively, you can discuss plans to help them remain in their home if that’s their desire. They might already have a well-thought-out plan, and knowing it can provide peace of mind.
Familiarize Yourself with Available Resources. Know about their bank accounts, insurance policies, and retirement funds, including where to find relevant documents. Additionally, assess whether there are sufficient funds to accommodate the next phase of their life.
Create Your Own Plan. Prepare both financially and emotionally for the possibility that you may need to assist with expenses or coordinate care.
Be a Resource. Stay informed about changes in laws and communicate any relevant updates to your parents. For example, inform them about the new $6,000 senior deduction that was enacted in July through the OBBBA. By being proactive, you can help ensure your parents are making the most of available opportunities.
WHERE TO GO FROM HERE
The problem isn't that children and parents don't care about transition planning; it is that they think there's plenty of time to do it. Unfortunately, this is not always the case. When approached properly, these planning conversations can further establish a level of trust and confidence within everyone involved. Having these discussions early allows for greater control over decisions, expenses, and overall comfort. If you’re facing financial decisions or have questions regarding family transitions, call our office today at (775)853-9033 or click here to see how we can help.
Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.
This information does not constitute legal or tax advice. PCIA and its associates do not provide legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information for their situations.
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