In the New York Times this week there was a piece on the importance of talking with your parents about their financial affairs. We couldn't agree more.
Talking to your family—whether parents talking to children, or children talking to parents—is one of the most important things we can do to prepare ourselves for the future. Financial, legal, and medical issues are going to come up for all of us. Knowing what mom or dad wants, and having those wishes spelled out in legal documents, not only relieves adult children of a huge burden, but also ensures that parents' financial and medical instructions are followed in the way they want. Naming a power of attorney and health care proxy is the first step that parents should take. Creating a will is essential as well, especially if parents have complex assets or young children. And organizing passwords and important documents, and then actually sharing the location of that information, is the third essential to-do. These are difficult conversations to have, and the logistics can feel overwhelming, but everyone will benefit in the end.
And to read about other people's experiences in planning (and not planning), check out the comments section of the piece.