Do Your Parents Have an Estate Plan?

Do Your Parents Have an Estate Plan?

If you are part of the sandwich generation—caring for both your children and your parents at the
same time—it is crucial that you know whether or not your parents have an existing estate plan.
While the final decisions within their estate plan rest with them, creating a comprehensive estate
plan is an absolute necessity, regardless of when it is done.
The thought of speaking with your parents about important and often sensitive topics like their
finances and estate planning probably makes you want to run as fast as you can in the opposite
direction. Nonetheless, having this conversation is the key to ensuring that your parents are
able to live their golden years without financial worries and that their wishes are carried out after
their death.
Estate Planning for Your Parents
Initiating conversations about your parents’ future, especially concerning their finances, medical
care, and memorial wishes, can be challenging, but it is undeniably one of the most important
discussions you can have with them. Addressing these topics sooner rather than later benefits
everyone involved and ensures greater peace of mind and preparedness for the future. This
crucial dialogue should encompass plans for when one or both parents pass away as well as
scenarios where they become incapacitated and unable to manage their own affairs. To help
ensure that their estate plan is comprehensive and aligns with their wishes, consider discussing
the following key areas with your parents:
● A team effort. Encourage your parents to compile a list of their advisors, starting with legal
and financial professionals, including their contact information. This list should also include
the contact information for your parents’ doctors so that whoever they nominate as their
health care agent can reach them if necessary. Even if they prefer not to share the list
immediately, they can create it and let you know where to find the information if the need
arises.
● Last will and testament or a trust. If you discover that your parents do not currently have a
last will and testament (also known as a will) or revocable living trust (also known as a trust),
it is probable that they do not have other essential estate planning tools, as these important
tools are often created as part of a comprehensive estate plan. If they do have a will in
place, confirm when it was created, who the personal representative or executor is, and
where the original wills are stored. Similarly, if you discover that they have a trust, you will
want to confirm who the trustee is, whether or not they have funded property and financial
accounts into their trust, and where the original trust documents are stored. Stress to them
that you do not need to read their will or trust in its entirety, but knowing where to find the
original documents is crucial to ensuring that their wishes are carried out when the time
comes.
● Medical directives. While discussing your parents’ estate plan, confirm whether they have
created a living will (also known as an advance directive) and a medical power of attorney.

These important tools allow someone to make medical decisions on their behalf if they are
unable to make or communicate their own medical decisions. If you discover that they have
these tools in place, encourage them to have a conversation with their chosen agent under
their medical power of attorney to ensure that the decision-maker understands your parents’
feelings and wishes about both their medical care preferences as well as their end-of-life
care, such as how their medical affairs should be handled should they become incapacitated
and whether or not they want to be on life support.
● Insurance policies. It is important for you or your parents’ trusted decision-makers to know
what insurance policies they have and where documentation is located, especially if one or
both parents become incapacitated. This includes health insurance (private or Medicare),
life insurance, homeowner’s insurance, auto insurance, disability insurance, and long-term
care policies.
● Financial, Investment, and Retirement Accounts. Encourage your parents to create a
comprehensive list of their checking, savings, brokerage, mutual fund, pension, and
retirement accounts. This list should include where each account is held, account numbers,
and the names of any key contacts at the institution. Just as important, your parents should
have a financial power of attorney in place so that a trusted individual can step in and
manage these accounts if your parents are traveling, ill, injured, or otherwise unable to
manage their affairs. An experienced estate planning attorney can draft this document, but it
is also wise to ask whether the financial institutions involved require their own power of
attorney forms, since these are often more readily accepted. Having a valid power of
attorney ensures that someone can access and manage your parents’ accounts, whether
checking, investment, or retirement, so that day-to-day expenses are covered and long-term
financial needs are met during incapacity and beyond.
Why Estate Planning Matters
Failing to put together an estate plan often leads to chaos, excessive costs and taxes,
unnecessary court involvement, inadequate incapacity planning, potential hurt feelings, delays
in distributing inheritances, and even unexpected outcomes after death.
Fear and discomfort can keep you from having this important estate planning conversation with
your parents. As estate planning attorneys, we can provide your parents with guidance and
advice on what options are available to them so that their wishes are followed upon their death.