Mom, Dad, Are You Ready? May 28, 2013My MoneyOff

Knowing something’s inevitable doesn’t always make it easy – like discussing finances with aging parents.

With the help of Jennifer Streaks, financial expert and author, we put together a list of important questions to ask your parents to ensure their finances (and your peace of mind) remain intact.

You need to know where everything is, including bank accounts, IRAs, investment accounts, CDs, annuities and retirement funds.

Streaks’ client learned this the hard way.

“When his grandmother passed away, he didn’t know she had a home equity line of credit until the bank started foreclosing on her house,” she says.

Do they have life insurance or long-term illness accounts? They’re not the same.

Long-term accounts are for recovering from illnesses with lasting effects, such as a stroke. If your parents are retired or unable to work, it helps you cover medical expenses.

It’s also important to know the details surrounding each of their property holdings.

“Know what your parents own, where it is and who’s managing it; and, make sure their taxes are up to date.”

Fifty percent of Americans with children do not have a legal will.

If your parents don’t have one, push for it. If they do, you need to know the lion’s share of it.

“Don’t just think about liquid assets. Things like a boat, undeveloped property or large outstanding debt should be included in the will,” Streaks says.

When is the right to talk with Mom and Dad?

Streaks advises approaching your parents when they’re around 60 – gently, with honesty and concern, of course.

Bonus PINK Link: Are you financially prepared for a long life? Why you should plan to live until 85!

Are you overseeing the finances of aging parents?

By Sarah Grace Alexander

“It is better to be prepared for an opportunity and not have one than to have an opportunity and not be prepared.” Maya Angelou

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