Questions to ask about your parents estate plan

Estate planning is a difficult process for families to go through.  How an estate may be distributed and which family members inherits the family treasures are not easy things to talk about.  However, there are several things that are necessary for families to discuss with regards to planning for the future.  There are five questions all children should ask their parents to ensure the parents have a solid estate plan for the future. 

Do you have a Will and/or a Trust?

Children should ask about whether their parents have a Will or a Trust.  If parents have neither, then the family can talk together about how to put one in place.  These simple questions can spark a conversation about estate planning and planning for the future.  While not an easy conversation to have, since it requires discussing what assets the parents have and how they are going to be used in the future and distributed upon their death, it is a necessary one.     

Do you have a durable power of attorney/health care directive?
 
It can be difficult to discuss what kind of end of life care Mom and Dad want.  A durable power of attorney is a document that identifies who can make financial and legal decisions for someone who is incapacitated.  Additionally, a health care directive defines what life saving measures someone wants when facing a life threatening medical situation.   While it is a difficult conversation to have, knowing whether these documents are in place can help quick decisions if something happens to a loved one and they are not able to make decisions for themselves. 

Do you have long term care insurance?

Long term care insurance is a type of insurance that covers the insured in the event they need long term care due to illness or injury.  Children should ask their parents about whether they have long term care insurance because if a parent falls ill it may fall on the child to care for the parent if there are not enough assets to pay for caregivers. 

Who is the executor of your estate?

Children should ask parents about who they have chosen to be the executor of their estate.  The executor is the person who is going to oversee how the estate is handled.  The executor may be one of their adult children, a friend or an attorney.  Parents may not want to discuss who the executor is because they do not want to be accused of playing favorites or hurt anyone’s feelings.  However, children should ask about who the executor is so there is no dispute over who is going to be in charge of overseeing the estate. 

Where are your important documents?

Children should ask parents about where their parents keep important documents, such as legal documents like a Will or a Trust.  People do not always think clearly when a parent dies.  Knowing where the important documents are located will make it easier to take care of what needs to be done, when emotions may be running high. 

Estate planning decisions are difficult to discuss, but better to discuss them now rather than be stuck going through probate later.  By asking these five questions, adult children can begin this necessary conversation to plan for the future.