Nobody likes to think ahead but having some information put together can make getting through a tough time just a little easier. If you haven’t discussed your parents finances then consider these questions to get started.
Here are 11 Questions to ask your parents.
- Do you have a power of attorney to manage your finances?
The first step is to find out if they have named a Power of Attorney (POA). This is a critical step in planning because without a POA in place, you’ll have to go to court in order to access financial accounts on their behalf. - Where do you keep your financial and important records?
Having access to important records quickly will save countless hours of guessing and research later. If items are locked up, make sure you know where the keys are or have combinations and codes available. - What are your bank account numbers and the names of your financial institutions?
In addition to knowing where they keep their money, you need specifics on all accounts. Knowing what banks, mortgage company or investment firms they use will make it easier in a time of need. - What are your monthly expenses?
Gather information about their mortgage, car payment, credit card debt, electric bill and other expenses. Know how they pay their current bills, is it by check or electronic? - Do you have Life Insurance?
Who is the insurer, what is your policy number? - How much is your annual income, and where does it come from?
Find out all sources of income and how much each provides. - Do you receive Medicare, Medicaid or Social Security?
If your parent becomes incapacitated, you may have to investigate the status and eligibility of their government assistance. Some government programs also require you to obtain additional permissions in order to manage their account(s). - What kind of medical health insurance do you have in addition to Medicare?
Do they have health insurance provided by an employer? If they are retired, are health benefits included as part of a pension? - Do you have long-term care insurance?
- Where are your health records?
Knowing their primary and specialists can help. Have access to
A “regular” health insurance plan does not cover the cost of assisted living or a nursing home. If they do not have a policy and can no longer live on their own, what can they afford in terms of care and housing? - Do you have an accountant, financial planner or attorney?
Who is it and how do you contact them? Have they done any estate planning?
