As children, we depend on ourparents for all financial needs. Andmany young adults (and grown ones too) still seek financial help or advice frommom and dad. But there will come a time when that assistance will need to bereciprocated back to our parents in their later years.
The key to an effectivetransition, while preserving the dignity of all involved, is communication.
A recent article in CNBC recently offered advice to adultchildren and their elderly parents. The article titled â€œWhenAdult Children Become Financial Caregiversâ€ suggested six steps. While you can read the originalarticle for the detail, the steps are as follows:
- Knowing the Right Time to Talk
- Framing a Sensitive Subject
- Building Trust
- Sibling Responsibilities
- Maximizing Efficiency
- Maximizing Inherited IRA
The basic principle to bear inmind is that both the elderly parents and the adult children have to assume andunderstand their roles. This is key for a family transition to move gracefully.This means communication, not only between parents and adult children, butlikewise between adult children working together on behalf of the family as awhole.
Naturally, this is all easier said than done. Intruth, there are any number of principles and rules for this transition, butthe six from the original article certainly are a helpful start. For more information on this and otherestate planning subjects, contact IdahoEstate Planning
and schedule aconsultation. Remember,good planning is no accident