6 Mistakes to Avoid Making When Managing the Affairs of Your Parents
A strange, and often disconcerting, thing sometimes happens as you get older. The parent-child relationship you have always had with your parents begins to reverse itself. From childhood well into middle age, your parents cared for you, provided you with advice and guidance, and acted as your financial cushion when you needed it. If your parents are now well into their “Golden Years,” however, you may find yourself providing the care, guidance, and financial support to your parents as they become more vulnerable and less able to make it on their own. If you find yourself managing your parents’ affairs, the Indianapolis attorneys at Frank & Kraft help you avoid making six common mistakes.
How Many Americans Provide Care for Aging Parents?
The elderly population in the United States has seen a significant increase in recent years, with the trend expected to continue. The retirement of the Baby Boomer generation and advancements in science and medicine contributing to longer life expectancies are key factors in this demographic shift. As individuals live into their 70s, 80s, and 90s, there is a growing demand for adult children to take on caregiving responsibilities and manage the affairs of their aging parents. According to a recent survey, approximately two out of every three adults offer some form of care to their elderly parents, with over half providing financial assistance.
Avoiding Pitfalls When Managing Parents’ Affairs
Recognizing the responsibility of becoming a caregiver for parents who can no longer manage their own affairs can be overwhelming. It’s crucial to navigate this role carefully to avoid common mistakes, such as:
- Delaying involvement. Acknowledge the aging process and address potential issues promptly. Waiting increases the risk of your parents facing physical or financial challenges. Regularly check on your parents and intervene when necessary.
- Avoiding tough conversations. Discussing a decline in your parents’ mental acuity can be difficult but delaying such conversations may lead to missed opportunities. Initiate discussions about essential estate planning documents, such as a Will, advance directives, and a Power of Attorney, while your parents still have the mental capacity to participate.
- Not seeking assistance. Providing care is challenging for both parents and children. Don’t hesitate to seek help from family, friends, or professionals. Consult with an estate planning attorney, financial advisor, or spiritual advisor, and ask for support when needed.
- Neglecting to address driving concerns. While driving symbolizes independence for older individuals, it’s crucial to recognize when it’s no longer safe. Taking away the keys may be difficult, but it ensures the safety of your parents and others on the road.
- Failing to plan for long-term care. With long-term care costs averaging around $100,000 per year and Medicare not covering such expenses, it’s essential to have a plan in place. Consult with an estate planning attorney to explore options like Medicaid planning to ensure financial coverage for potential long-term care needs.
- Overlooking legal considerations. Anticipate potential legal challenges, such as needing the authority to remove a parent from a care facility or making end-of-life decisions. Comprehensive estate planning now provides the legal authority required for future situations.
Do You Need Help Managing Parents’ Affairs?
For more information, please join us for an upcoming FREE seminar. If you have additional questions or concerns, contact the experienced Indianapolis estate planning attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
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