When Children Grow Up and Parents Become the Children’s Responsibility

Elder Care, Estate Planning, Probate, Retirement Planning, Trusts, Wills / Asset Protection, Capacity, Elder Care, elder law, Estate Planning, Long-Term Care Planning, Medicare, Paying for a Nursing Home, Planning for the Future, Power of Attorney, Probate Court, Retirement Planning, Trusts, Wills

Let’s examine some of the things you can do, as your parents go through the aging cycle.

America is aging, and by 2050, there will be nearly 88 million seniors over age 65. With this huge demographic shift, adult children will find themselves with a new role.

It is not unusual in many families that as parents age, their children take on the role of caregivers. However, the sheer number of people who will be over age 65 in coming years, will make some big changes in our nation, as reported by Fox Businessin the recent article, “Aging parents are the new ‘children.’”

One concern is that aging parents can lose their mental abilities. The Alzheimer’s Association says that every 65 seconds, someone in the U.S. develops the disease. It’s now the sixth-leading cause of death. This can create additional long-term care needs for parents and result in an emotional and financial burden on adult children.

Parents with physical limitations may have difficulties living independently. Therefore, you should understand your parents’ long-term plans and how they will impact you. Let’s examine some of the things you can do, as your parents go through the aging cycle.

Family Conversations.While talking to your parents about these topics now may be uncomfortable, it will save you a lot of stress, time, and money in the future. Parents who want to preserve autonomy should express their wishes. Parents should discuss their healthcare wishes, the what ifs and finances now to discover what options they may have for care. It’s important that adult children understand details of their parents’ financial situations, before they’re unable to communicate due to incapacity or death.

Get the Family Affairs in Order.Create a system to help with gathering information. This should include medical histories and estate plans. Start to organize information with your parents as early as possible. Adult children should be sure that their parents have a will, a trust (or both), a durable power of attorney for property and a durable power of attorney for healthcare.

Determine Parents’ Long-Term Financial Needs.It’s extremely expensive to provide care for aging parents. Seek professional guidance to determine how much of your parent’s savings is currently allocated to pay for healthcare in retirement, not covered by Medicare. Look at long-term care insurance.

Have an Actively Involved Relationship.If you see your parents on a regular basis, keep your eyes open for any kind of change in their behavior or signs that things are not right: stacks of unopened mail, phone calls from people you don’t know, etc. If you do not live near your parents, ask an estate planning or elder care attorney for recommendations for social workers or elder care services to help your parents. They can do things like take parents to medical appointments, talk with care facilities on your behalf and keep you apprised of your parent’s well-being.

Your parents may or may not enjoy the “golden years” that we envision, but some preparation now, including having the tough discussions, will at the very least make it easier in the future.

Reference: Fox Business (May 25, 2018) “Aging parents are the new ‘children’”

Making Financial Planning Part of Your Wedding Planning?

Asset Protection, Estate Planning, Retirement Planning, Tax Planning, Travel, Wills / Beneficiary Designations, Elder Care, Estate Planning Attorney, Inheritance, Life Insurance, Planning for the Future, Power of Attorney, Prenuptial Agreement, Retirement Planning, Tax Planning, Trusts, Wills

Once you’ve worked through the financial and legal part of planning your new life together, many issues that plague marriages will be resolved.

No, it’s not as romantic as planning a honeymoon along a sandy beach. But once you’ve worked through the financial and legal part of planning your new life together, many issues that plague marriages will be resolved. That’s romantic!

The leading cause of stress in relationships in general and marriages in particular are finances, as reported in an article from My Primetime News, “Hearing Wedding Bells? Be Sure Finances are Included in Your Planning,”by Gerald Rome, Colorado Securities Commissioner. As many as a third of people, say that money is the primary source of discord in their partnership. Therefore, why not eliminate the problem by addressing it?

Rome notes that summer is wedding season. Whether you’re taking the plunge later in life—maybe for the second time or advising a young couple about to make the ultimate commitment—much of the thought process is the same. There’s perhaps no topic less uncomfortable, but more important, than finances.

Before you or a loved one say, “I do,” be sure to consider the following:

Transparency.Many divorces stem from a lack of honesty about finances. Before you walk down the aisle, be sure you know everything about your betrothed’s financial past, spending habits, investing philosophy, and goals for the future. That means sharing information on major debts from education, business, and home loans, as well as credit scores and bankruptcy history. If you’re entering a second marriage, be truthful about any alimony being paid to or received from a former spouse.

For those marrying later in life, think about how or whether to merge accumulated assets and how to compromise on handling financial affairs, after what may have been many years of individual decision-making.

Financial Roles.For co-mingled finances, it’s important to be certain that you’re clear on who will handle what. Many financial issues that arise later in life, are due to one spouse not knowing what’s going on and being deluged with a mountain of new information and decision-making, in the event of a spouse’s sudden illness or death.

Prenuptial Agreement.Detailing what will happen to assets if the marriage fails, isn’t about a lack of trust—it’s about being prepared.

Estate Planning.Organize your property to ensure that no matter what happens, your family’s financial needs will be met. This includes drafting powers of attorney, creating or revising your wills, purchasing life insurance policies, revisiting retirement accounts and investment funds, establishing trusts and naming beneficiaries and considering any tax implications.

By dealing with the business side of marriage from the start, you may learn a lot more about your intended than you would if you had avoided the conversation. Once you know what each other’s financial status is, good or bad, you can figure out how to fix it—or enjoy it! By working with an experienced estate planning attorney and getting your estate plan prepared, you’ll be ready to relax and enjoy each other, without any nagging worries about financial or legal mysteries.

Reference: My Primetime News (May 2, 2018) “Hearing Wedding Bells? Be Sure Finances are Included in Your Planning”

Who is Most Worried About Social Security?

Elder Law, Retirement Planning, Social Security / elder law, Planning for the Future, Retirement Planning, Social Security

Worrying about Social Security doesn’t help anyone but being aware of the challenges facing the system and preparing for change is always the best course

Worrying about Social Security doesn’t help anyone but being aware of the challenges facing the system and preparing for change is always the best course.

Not surprisingly, pre-retirement adults age 50-64 are the largest group of American adults worried about the Social Security system: 51% expressed worry to pollsters.

It’s a different view from another generation, as reported in Think Advisor’sarticle, “Older Pre-Retirees Worry a Lot About Social Security: Gallup.”Just a third of young adults, expressed a great deal of concern about the system.

Gallup conducted telephone interviews in March with a sample of about 1,000 adults living in all 50 states and DC. The data showed that 44% of Americans worry a “great deal” about Social Security, 28% worry a “fair amount,” 17% “only a little” and 10% “not at all.” Social Security ranked in the middle of a list of 15 issues or social problems the respondents were asked to rate in the poll. The survey participants said they were most worried about the availability and affordability of health care.

Gallup says the percentage of older pre-retirees in the survey who worried a great deal about the Social Security system had decreased from the 59% record highs recorded in the three-year rolling averages for 2009 to 2011 and 2011 to 2013.

Younger adults in the survey also recorded slightly lower averages than in recent years, and 11 percentage points lower from 2007. Concern about Social Security has also subsided with retirement-aged Americans. Roughly 46% express a great deal of worry—down from an average of 56% for 2010 to 2012.

For respondents in the 30-to-49 age bracket, the percentage expressing a lot of concern about Social Security has remained steady in the range of 46% to 52% since 2005, according to Gallup. In the current poll, 49% said they worried a great deal.

It’s no surprise that majorities of Americans with annual incomes of $30,000 or less have consistently reported a great deal of concern about the Social Security system since 2005. That peaked at 62% as the average for 2009 to 2011. The current 53% who worried a great deal is about the same as the low recorded in the 2007 to 2009 average.

Worries among higher-earning groups have remained steady, with a range of 47% to 53% between 2005 and 2018 for respondents with annual household incomes between $30,000 and $74,999, and 40% to 44% for those with annual incomes of $75,000 or more.

The Gallup report said that no politician wants to get involved with the heavy lifting needed to fix Social Security to ensure that it can continue to operate. Previous administrations certainly didn’t get anywhere. But at some point, this will have to be addressed, and at that time, it’s likely that Americans will begin worrying again.

Reference: Think Advisor (April 9, 2018) “Older Pre-Retirees Worry a Lot About Social Security: Gallup”

When Children Grow Up and Parents Become the Children’s Responsibility

Making Financial Planning Part of Your Wedding Planning?

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