Financial Questions to Ask Mom and Dad

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Many Americans have been focused on their own finances over the past several months. But don't neglect helping those closest to you with their finances as well, especially aging parents. Here are some questions to ask your parents to help them sort through their financial picture.

Have You Decided When You'll Start Taking Social Security Benefits?

If your parents have not started taking Social Security, a discussion in this area will help both of you. Generally, Baby Boomers can receive their full amount of benefits at age 66, but benefits increase gradually if they wait longer, reaching the peak at age 70. Conversely, if your parents intend to retire early, they may wish to start receiving reduced benefits as soon as age 62. To add more complexity, a spouse can take retirement benefits from their partner's work history. Often a rule of thumb is if you expect to live past 80, consider delaying when you first receive benefits, if you can afford to do so.

Do You Have a Durable Power of Attorney?

If you need to act on behalf of your parents regarding financial matters, you will need a power of attorney. Without this document in place, you'll have to go to court to get guardianship of your parents in order to access their financial accounts.

Is There an Executor?

Who is responsible for going through everything when necessary? You don't really need to know who it is, just that there is someone in place with a potential backup executor if the primary executor is unwilling or unable to help.

Where do you Keep Financial Records?

Does someone, other than your parents, know where financial documents and information are kept? This includes bank account numbers along with usernames and passwords for websites.

Who are the Key Advisors?

The executor will need the names and contact information for each member on your parents' team of trusted advisors. Ideally your parents have introduced their executor to each of the members of their team.


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Disclaimer

The information in this article is written as accurately as possible and to best of the writer's knowledge. However, there may be omissions, errors, or mistakes. Because of this and changes in circumstances, the information in this article is subject to change. This article is for informational purposes only and should not serve as professional, financial, medical, emotional, and/or legal advice. Readers may rely on the information on this article at their own risk, but they should consult a CPA, financial expert, or other professional for advice. Givilancz & Martinez, PLLC reserves the right to change and handle this article series, and therefore, may remove or alter any part of this article or the comments section. Any comments inserted by readers are not the responsibility of G&M PLLC and do not represent the thoughts or ideas of G&M PLLC.