The topics of aging, long term care and eventual death are always difficult conversations to broach, especially with our loved ones. However, as we age we understand the need and desire to protect those assets we have worked so hard to build. The reality is that the cost of long term care and meeting the daily needs of our senior loved ones can be significant. Early planning can not only protect those assets your parents’ have built, but allow them to access resources such as Medicaid to assist with the high cost of long term care and provide everyone with peace of mind. Starting this difficult conversation becomes much easier if you approach it early before the need for care is present or a health concern has developed.
Asking your parents if they have a comprehensive estate plan or if they are prepared to meet their long-term needs, is not an easy conversation to start, especially when your parents may still see you as their young child and you see them as your strong parents who will be around forever. While it is a difficult conversation to have, decisions on proper planning can make an enormous financial difference.
Below are a few tips that can help you approach the topic of asset protection planning with your parents.
At Fratello Law, our compassionate and experienced estate planning attorneys can help facilitate this conversation and present options for the comprehensive estate plan that is right for our clients. We understand that talking about aging, death and money can be challenging, even with family. Our estate planning attorneys take great pride in helping our client family reach their financial goals, while providing peace of mind that our loved ones are protected.
How to Talk to Parents About Asset Protection Planning
Asset protection planning is a process that builds barriers around a person’s assets (personal and business) to keep them safe from litigation, Medicaid recovery, creditor claims, probate, and unnecessary taxes. This is an incredibly beneficial process to help protect assets that is not just for the very wealthy, as some people may believe. However, our parents may not be aware or understand what asset protection planning is available to them. Below are a few tips to help children approach the subject of asset protection planning with their parents.
They May Not Be So Open About Money
Our parents’ generation approach certain topics in different ways than their children, especially when it comes to the topic of money. A study found that millennials are more inclined to talk about money than their parents. For most of our parents’ lives, it was taboo and unheard of to talk openly about money. However, the younger generation believes it’s good and even necessary to openly talk about money.
While you may feel no reservations about discussing money, your parents come from a place and time where social restrictions discourage that conversation. It’s important to understand that your parents may need time to feel comfortable discussing money so openly.
Make It Relatable
One of the best ways to approach conversations with anyone is to keep things relatable and even familiar. Bring up real-life examples to your parents about someone they know who passed away and whether they did or didn’t have their affairs in order and how that impacted their loved ones and assets after their passing. Giving them a real picture of the consequences and benefits can go a long way in helping them understand the importance of being proactive in their own planning.
Remind Them of Each Other
Asset protection planning isn’t just about individual protection. For instance, if something happens to one spouse, the other spouse has the burden of sorting through their estates. If both spouses pass away without a plan, the burden shifts to the child. Furthermore, their assets could be hung up in probate, adding legal fees and delays, with the asset distribution potentially in the hands of the court instead of a trusted family member.
They may not feel comfortable discussing money, but the idea of their assets being handled by the court or subject to recovery by the government, instead of their designated loved one, can motivate them to take the necessary steps to start protecting their assets.
Start Asset Protection Planning Today With Fratello Law
While aging, death and money can be challenging to talk about, it is necessary. At Fratello Law, we understand these sensitive subjects and are proud to help our clients not only to approach the subject comfortably but to develop the estate plan that is right for them. As a family-oriented firm, our priority is our client’s best interest, in light of their unique situation and personal goals. We are a small firm with a big heart. We look forward to adding you and your parents to our client family. Arrange a no cost consultation by completing our contact form or calling (631) 406-5580 today.