Do Your Parents Have an Estate Plan?

With Estate Planning Awareness Week occurring October 20 – 26, it’s an ideal time to consider your parents’ estate planning needs. If you are part of the sandwich generation, caring for both your children and your parents at the same time, it’s crucial that you know whether or not your parents have an existing estate plan.

While the final decisions within their estate plan rest with them, creating a comprehensive estate plan is absolutely necessary, regardless of when it is done.

Why Discussing Estate Planning with Your Parents Matters

Initiating conversations about your parents’ future, especially concerning their finances, medical care, and memorial wishes, can be challenging. Still, it is undeniably one of the most important discussions you can have with them.

Having this conversation sooner rather than later is the key to ensuring that your parents can live their golden years without financial worries and fulfill their wishes after their death. Early dialogue also helps avoid confusion, conflict, or unnecessary costs for your family in the future.

Key Areas to Review in Your Parents’ Estate Plan

When reviewing your parents’ estate plan, it’s essential to cover all critical areas that affect their finances, healthcare, and legacy. A clear understanding of these key components ensures that their wishes are honored and your family is prepared for any situation.

The following areas are essential to discuss and review with your parents to create a comprehensive estate plan.

Compile a Team of Advisors

Encourage your parents to compile a list of their advisors, starting with legal and financial professionals, including their contact information. This list should also include the contact information for your parents’ doctors so that whoever they nominate as their health care agent can reach them if necessary. Even if they prefer not to share the list immediately, they can create it and let you know where to find the information if the need arises.

Last Will, Testament or Trust

If your parents do not yet have a will or revocable living trust, it’s likely they are missing other essential estate planning tools as well. If a will exists, confirm the personal representative or executor and the location of the original documents.

For a trust, verify the trustee, funding status, and storage location of the trust documents. You do not need to review the documents yourself, but knowing where they are ensures your parents’ wishes are carried out efficiently.

Medical Directives

Confirm whether your parents have a living will (advance directive) and a medical power of attorney. These tools allow someone to make healthcare decisions if your parents become incapacitated. It’s also important that your parents discuss their wishes with their chosen healthcare agent, including end-of-life care preferences such as life support and treatment decisions.

Insurance Policies

It is important for you or your parents’ trusted decision-makers to know what insurance policies they have and where documentation is located, especially if one or both parents become incapacitated. This includes health insurance (private or Medicare), life insurance, homeowner’s insurance, auto insurance, disability insurance, and long-term care policies.

Financial, Investment, and Retirement Accounts

Encourage your parents to list all checking, savings, brokerage, retirement, and pension accounts. Include account numbers, institutions, and key contacts. A financial power of attorney ensures that someone can manage these accounts if your parents are unable, covering day-to-day expenses and long-term financial needs. An estate planning attorney can assist with drafting these documents and confirming compliance with each financial institution’s requirements.

Why Comprehensive Estate Planning Matters

Failing to put together an estate plan often leads to chaos, excessive costs and taxes, unnecessary court involvement, inadequate incapacity planning, potential hurt feelings, delays in distributing inheritances, and even unexpected outcomes after death.

Fear and discomfort can keep you from having this important estate planning conversation with your parents. An experienced estate planning attorney can provide your parents with guidance and advice on what options are available to them so that their wishes are followed upon their death.

Use Estate Planning Awareness Week to Strengthen Your Family’s Legacy

Estate Planning Awareness Week is the perfect opportunity to review your parents’ estate plan or help them create one. Protecting their financial accounts, healthcare decisions, insurance policies, and overall legacy is critical to their peace of mind and your family’s security.

If you need a starting place to begin talking to your parents about their estate plan, download this estate planning check list to make sure your estate plan reflects your wishes.

Download the check-list here.

Get Started on Your Estate Plan with Charlotte Estate Planning

Charlotte Estate Planning’s experienced attorneys can help your parents develop or update a comprehensive estate plan, including wills, trusts, powers of attorney, and healthcare directives. Reach out today to ensure your parents’ wishes are protected and their estate is managed according to their goals. Don’t wait, take action during Estate Planning Awareness Week to safeguard their future.

Contact our team today at (704) 766-8836 or by filling out our online contact form.