Reply to What is the right age to begin to talk to your parents about protecting their finances?

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Reply to "What is the right age to begin to talk to your parents about protecting their finances?"

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[quote=Anonymous]
I think at any age it is not out of bounds to have a conversation perhaps on both ends of just how prepared is a couple or an individual if single financially and legally for the future covering such topics as needed because:
- At age 18 one becomes a legal adult and parent input is severely limited in medical and legal decision-making unless certain steps are taken.
- At age 26 when the option to continue on Family Health insurance  comes up, it is important to know options, including COBRA for up to another 3 years if it is important to keep a good policy.  [b]And to help the young adult transition to an individual policy without a break in coverage.[/b]
- At age 62-65 to start to learn about the options with Social Security and Medicare and what is best pathway.

A quick rundown of topics one might consider follows - not meant to be comprehensive - but maybe a starting point:

[b]Insurances[/b]
Health - 
- Individual or Family Coverage - Critical ages are 26 and 65
- Primary with Medicare and Secondary with a Medicare Supplement
- Decision Making at Retirement as there may be one-time decisions such as electing a plan with prescription drug coverage or not
Life Insurance
Long Term Care Health Insurance

[b]Legal[/b]
- Will 
- Guardianship Provisions of minors and/or disabled adults
- Trust Options as appropriate to protect assets and limit probate
--Special Needs Trust if needed
--Trusts Provisions in terms of protecting assets in covering future health care costs/qualifying for Medicaid as there is strict 60-Month Look Back provision on tranfers
- Power of Attorney
- Health Care Directive (Making Decisions)

[b]Financial & Legal[/b]
- Getting Contact Information for any advisors:  Lawyer, Financial Advisor, Accountant, Workplace HR etc.
- Checking to be sure both spouses names are on all shared financial accounts (of any age)
- Checking that the beneficiary of any retirement account, pension etc is up-to-date.  [b]It is not enough to put it in a legal document if one does not follow through on the resources to have it changed - intent means nothing without execution)
- Again - a Trust of whatever kind can be set up, but one must then take direct steps to have all appropriate assets transferred to the "Named Trust "
- [/b]Be sure there is a list of all passwords/pins to all aspects of one's life which is so much online starting with their phone(s) will help in accessing information.  
- Being sure both spouses names are on financial documents as mentioned, plus house deed and mortgage, plus utilities can be important in resolving issues (divorce for example) as well as sudden cognitive decline of one who has been"in charge of finances", or sudden death (at any age.)

[b]Social Security[/b]
- Understanding what you need to have to qualify for Social Security, for Social Security Disability Insurnace (SSDI)
- Understanding how how the rule of when to collect and on whose work record might apply to a married couple to get the most benefit
- Understanding if you have a disabled child how SSDI benefits can benefit them if a parent should become disabled, retire or die of any age. 
- [u]From our case at age 18:[/u] If one meets the criteria for Disabled Adult Child, one was able to collect an amount equal to half of the parent rate of Social Security upon retirement - [/b]if you know to apply and assuming no one else such as spouse also is drawing down from the account.  Upon death this can go as much as 75% for a lifetime tax free as long as disabled criteria remains.[b]
- [u]From our case on Medicare Health Insurance [/u]- once a Disabled Adult Child receives SSDI payments after 24 months, Medicare can become the primary Health Insurance.  For most, Medicaid would be the Secondary Health Insurance (though one can elect a private Medicare Supplement, too.)

[b]Resources to find the answers:[/b]
- Using a form or book that covers these and other topics might be a good starting point for older parents - simply asking them for their benefit to fill in the information.  
- A Certified Financial Planner - Can for a fee provide a consultation on your finances to give you some direction without becoming a continuing advisor or broker.
- A Family Lawyer - Can answer many basic questions which may come up in the course of life for an initial consultation which might be free or a defined amount.
- A Lawyer with Special Needs Trust experience can often be harder to find and one might start with a local organization such as The Arc or look online at a Free website:  Special Needs Alliance
- An Eldercare Lawyer would be one focusing on issues related to later life decision-making and expected to have experience in protecting assets, reviewing contracts for CCRCs or Assisted Living or Memory 
services.
-www.socialsecurity.gov
- Your local Senior Center of Office on Aging can be a good resource to find FREE Lectures or Workshops on Medicare, local service providers etc.[/quote]

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