By Amy Rohde, CFP®, CFTA, Senior Relationship Manager
Long-term care and diminished capacity are critical topics that every family must tackle. While these can be sensitive subjects to discuss, parents who provide their children with insight help secure the financial future of the entire family.
Recommendations for starting the conversation with your children
What are the events that would trigger a long-term care or diminished capacity plan?
Have an open and honest conversation with your children about the life stages and events that would activate a plan to address long-term care needs or diminished capacity. Discuss specific health scenarios — for example, does your family have a history of degenerative illnesses, such as Alzheimer’s?
What are your long-term care preferences, and which option might be right for you?
Be vocal with your children regarding your long-term care preferences, and inform your advisor of those preferences. Whether you choose in-home care, living with a relative or an assisted living facility, having the conversation now will ensure an easy transition later.
Have you created the appropriate legacy and estate planning documents?
Remember that some decisions require formal documents to be created—such as a will or a trust.
Where are your important documents located? Are they all up-to-date?
Important documents range from property deeds to credit card statements, from insurance policies to retirement plan information. Be sure you keep your important documents up to date, and talk to your children about how and when to access them.
Who are your and your adult children’s emergency contacts? Who has financial and healthcare power of attorney?
Identify which of your children or family members should serve as your emergency contact, as well as who should hold the power to make financial and healthcare decisions on behalf of you and your adult children. Talk to them about your specific wishes in the event of a medical emergency or death.
What are the ongoing financial responsibilities and priorities that your children will take on?
Be specific about the recurring financial duties that your children must handle on your behalf. Consult with your advisor to create a detailed list of monthly, quarterly, and annual financial responsibilities. If you have specific goals— for example, college savings—now is the time to discuss.
What are your preferences for communicating with and involving your advisor in financial decisions?
Your financial advisor has a full view of your family’s finances and plays an essential role in helping you plan for the future. Sit with both your children and your advisor to agree on the involvement and responsibilities of your advisor as you age.
How often will you revisit this conversation?
Work with your advisor to create a timeline and schedule regular financial touchpoints.
Amy Rohde is a Senior Vice President and the Key Private Bank Senior Relationship Manager in Naples. She is a CERTIFIED FINANCIAL PLANNER™ and Certified Trust and Fiduciary Advisor (CTFA) professional. She can be reached at (239) 659-8812 or amy_rohde@keybank.com.
Any opinions, projections or recommendations contained herein are subject to change without notice and are not intended as individual investment advice. This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice. KeyBank is Member FDIC. KeyCorp.
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