Is It Too Late for a Family Meeting to Discuss Money?
Even those who have saved and invested well may not be sharing their financial information with a spouse or loved one. It is time to do that now.
A Kiplinger’s article recommends that families talk about money with elderly parents. If it is truly too late for that conversation, you should know where to find the following information.
Get the Most Recent Tax Return
This document contains the name and contact information of the accountant who prepared it. The tax return also documents income sources. If you find the income, you can find the assets, since earned interest, dividends, pension income, and retirement account withdrawals are reported there. You should also call the employer’s human resources department to inquire about company life insurance benefits or 401(k) balances.
When a senior is hospitalized, their health can sometimes deteriorate quickly. This underscores why everyone needs an updated estate plan and ordered financial affairs. Someone must know all financial details and how to access money, life insurance, and important documents. Consider taking these actions now.
Collect Key Financial Documents
Ask your parents to gather copies of:
- Their wills
- Any trusts
- Financial power of attorney
- All bank and brokerage account information
- Social Security statements
- Website log-ins for financial assets and insurance policies
- A list of beneficiaries for IRAs, annuities, and life insurance policies
- A list of other assets and debts
- Most recent tax returns
The tax return is the most crucial document for uncovering current assets. It describes assets and income from pensions, annuities, real estate investments, business interests, and Social Security. A Schedule B reports interest and dividends received annually. If you cannot locate statements or log-in information, ask the tax preparer for 1099 forms for each asset to identify which companies to contact.
Make Certain Key Documents Are Signed
These include a will, financial power of attorney, healthcare power of attorney, and trust documents. Store these in a safe place along with copies of the Social Security card, birth and marriage certificates. Also provide copies and access to professional advisers such as attorneys, accountants, financial planners, and insurance agents. Share this collection’s contents with the parent’s executor, financial and healthcare agents, and nearby relatives.
Key Takeaway
It is never too late to start organizing financial information and estate planning documents. Even if the ideal family conversation has not happened yet, taking steps now to locate and organize key documents can save your family significant stress and expense during a crisis. Contact an experienced estate planning attorney to help ensure all necessary documents are in order.
