The key to learning about the financial plans of your parents is to ask for advice on your plans and then ask about their plans, according to “Ask your folks about their financial plans.” Start by explaining your own plan, how you’ve decided to set up your estate and then ask what they’ve done for themselves.
If something happens to their parents, the children are the most likely ones to step in and take charge, whether it’s caring for a surviving spouse or stepparent or the entire estate. The more you know in advance, the better equipped you’ll be.
Your first real job is a good opening to talk about saving for retirement. Ask them what they did, or do, about 401(k) contributions. This will give you insight into how well-prepared and knowledgeable they are about retirement savings. If you’re house hunting, that’s an excellent opportunity to get them talking about their retirement plan. Do you need to buy a home with a possible “in-law” suite in mind? It’s not a bad question to ask. It shows that you are thinking about their future needs.
Untangling an estate when there’s no will and no advance planning has been done can tear a family apart. That’s the last thing you or your parents want. Talking openly with them about money, trusts, wills, life insurance and advance medical directives will give you an idea of what they have or have not done to plan for the future. It may spur them to move forward with plans that they’ve procrastinated on.
Even if you learn that they haven’t done any planning and don’t have a will, that is better than not knowing until it’s too late. If you learn that this is the case, you can start educating them about what will happen, if they don’t meet with an estate planning attorney. You can offer to take them to meet your estate planning attorney or offer to get them a few names so that they can choose an attorney with whom they are comfortable.
Starting a family and setting up your own estate plan is another opportunity to ask your parents what they did and what their thoughts are about your plans.
Reference: Barchart (April 16, 2019) “Ask your folks about their financial plans”