Discussing money at the holidays is a taboo topic. As your parents age, it is important that you know a bit about their money. It is not easy to bring this up at Thanksgiving, but your parents could be struggling to pay for groceries or an expensive medicine. Or they could have plenty of money but not be spending it on themselves.
One tip is to share your finances or ask for advice. This is what I did with my mom. I knew she saved and scrimped, but I did not know how much was out of necessity and how much was her Depression-era mentality. In asking for advice, I discovered my mom valued saving, but if she needed something, she would get it (after making sure she got the best deal). I found out that she planned for everything. She purchased long-term care insurance, her burial plans had been made when I was a young child, and of course, she had a trust and power of attorney.
We talked about the high cost of groceries, and I found out my mom carefully budgeted so that she did not run out of money before the end of the month. Listening, I knew she had enough—she just loved to save. In talking, she started telling me about her investments, giving me the insight I needed. When the time came and she needed care, I knew about her long-term care policy, and she had by then told me about all her investments.
Take some time over the holidays and discuss money with your parents. It is important. If they are worried about an out-of-date trust, give me a call.
