"When
they are having trouble understanding bills and writing checks it might be time
to step in, slowly, at the ground level," Kolinsky said adding that if
parents initiate a discussion, the ideal time would be when they are in their
70s and still healthy.
As children, we depend on our
parents for all financial needs. And
many young adults (and grown ones too) still seek financial help or advice from
mom and dad. But there will come a time when that assistance will need to be
reciprocated back to our parents in their later years.
The key to an effective
transition, while preserving the dignity of all involved, is communication.
A recent article in CNBC recently offered advice to adult
children and their elderly parents. The article titled “When
Adult Children Become Financial Caregivers” suggested six steps.
While you can read the original
article 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 in
mind is that both the elderly parents and the adult children have to assume and
understand their roles. This is key for a family transition to move gracefully.
This means communication, not only between parents and adult children, but
likewise between adult children working together on behalf of the family as a
whole.
Naturally, this is all easier
said than done. In truth, there are any number of principles and rules for this
transition, but the six from the original article certainly are a helpful
start. #elderlawtorrance #estatelawtorrance
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Reference: CNBC (June 3,
2013) “When Adult Children Become Financial Caregivers”