Do you expect your parents to leave you a financial legacy? - You can help them make it happen.
Perhaps the bigger question is how to even approach this topic with your parents. Because frankly speaking, no matter how you look at this, it’s such a sensitive issue.
When asking your parents about their estate planning, you don't want to appear greedy. But you need answers to specific questions to ensure that your parents’ financial wishes are carried out, and there is a smooth transition of wealth and assets.
Here’s how to approach this touchy subject and get the necessary information.
1. Have resources handy
An excellent way to start this conversation is to reference a resource, such as a book or an article you read, about the importance of estate planning. You could share this article on our blog with them.
2. Do Your Own Estate Planning
Additionally, you might mention that you're doing your own estate planning so there's no question about who gets what when you are gone. After that, you can ask whether your parents have done anything similar.
3. Discussing Key Documents
Start by finding out whether they have these key legal documents:
- A will, power of attorney or a living will or health care directive
4. Finding Out Where Important Documents Are Kept
Find out where your parents keep these documents and how you can access them if necessary. This is an excellent opportunity to introduce the Cova vault to them; as a way to store their vital estate planning documents.
5. Gaining Access To Accounts
You also need to ask your parents to provide other important information so you can handle their finances if they are unable to or when they pass. This is another opportunity to let them understand how to connect their assets to Cova; that way, there is no pressure to give out their private financial information until it’s time.
6. Prove yourself reliable and trustworthy
Just as it is important to know when to have these conversations, it is crucial to know when not to. The key to having any conversation about money is establishing trust.
You don’t want to talk to your parents about their estate if you’ve recently argued with them or haven’t demonstrated to them that you can be financially responsible.
You have to prove to them that you can handle your own finances and that they can trust you with theirs.
Finally, you should also understand that getting all these to happen may take time.
Have you taken this bold step of discussing estate planning with your parents? How did it go? I’d love to hear about your experience. Tweet at Caro to share your experience.