Caring for Aging Parents and Protecting their Future with Estate Planning

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 94.7 million in 2060. As our nation ages, many Americans are turning their attention to caring for aging parents.

The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

Cover the basics with our estate planning checklist

Knowing ahead of time what information you need to find out may help keep the conversation on track. Gathering this basic info is a good starting point to ensure your parents receive the appropriate level of care and support.

• Primary physician
• Specialists
• Medications and supplements
• Allergies to medication

It’s also important to know the location of medical and estate management paperwork. Here are a few examples of what you may need to gather. See our Estate Planning Checklist for a more complete list.

• Medicare card
• Insurance information including long-term care
• Durable power of attorney for healthcare
• Financial power of attorney
• Will, living will, trusts and other documents

What exactly is estate planning?

Your estate includes all your possessions—everything you own. Estate planning is preparing a plan in advance to ensure your wishes (who will receive everything you own) are carried out upon your death.

An estate plan can include the following documents:

• Trust— Legal arrangements that provide for the transfer of assets from yourself to an entity. Trusts hold assets for one or more beneficiaries. They often allow for more flexibility and control when making gifts. Trusts also typically avoid probate.
• Will— Enables you to specify who you want to inherit your property and other assets. A will also enables you to name a guardian for your minor children. A will is only effective at death, and the assets are subject to probate.
• Power of attorney— Refers to the legal authorization which gives a designated person the power to act on behalf of someone else.
• Beneficiary forms— In some cases, naming a beneficiary for bank accounts and retirement plans makes these accounts "payable on death" to your beneficiaries. In other cases, you will need to fill out a "Payable on Death" form.

Your estate plan will not only handle asset distribution at your death, but it will also list the name of the person who will make financial decisions on your behalf if you were to become incapacitated.

Estate planning is important at any age. It ensures your possessions and funds are bequeathed based on your wishes.

Be thorough collecting critical information

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists may help prepare you, keep in mind that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, and do your best to get all the information you need.

Keep the lines of communication open

This conversation is probably not the only one you will have with your parent about their future needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations and needs.

Don't procrastinate communication about important issues

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

If you have more detailed questions, find a team near you and connect with an Associated Bank financial professional today.