Every year, we celebrate Mother’s Day and Father’s Day to honor the people we love and reflect back on the memories we’ve made with them. But as our loved ones age, adult children may want to also consider setting aside time to have a family money conversation.
Why? The simple fact is that at some point, mom or dad may need help organizing and/or managing their finances.
Sharing important information with one another today may help you and your family be prepared when the time comes that you or a sibling needs to step in to lend a hand. Important topics to consider in such a conversation include insurance, creating an inventory of your parents’ assets and liabilities, ensuring your parents have enough money to provide for their retirement, establishing your parents’ wishes regarding passing on their wealth in the event of their death, and more.
Talking about money, potential health considerations and other “private matters” may sometimes seem awkward and having these kinds of conversations as a family can be challenging. But doing so today helps to ensure everyone is on the same page, making it easier for your family down the road.
To help navigate those potentially difficult areas, here are a few tips for meaningful family money conversations:
• Communicate your desire to help one another prepare to transition responsibilities.
• Discuss your feelings and needs regarding changing roles.
• Understand parental circumstances, needs and values regarding money.
• Consider parental health care, end of life and financial legacy wishes.
• Seek to align children’s strengths with future duties.
• Identify professionals who may be able to provide assistance, as necessary.
• Commit to periodically revisiting the conversation to see if anything has changed.
For assistance or advice, contact a financial professional. They can help your family both before and after these important conversations.
This article is provided by Brandon Honcoop a Financial Advisor at RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance.
