In the first article, we looked at the importance of ensuring that there is a financial plan in place and the need to have a record of your parent’s assets. In the second we looked at the need for making a will and pension nomination forms.
As previously mentioned, these conversations can be some of the hardest you will have with your parents. It is important that your parents should not feel that they are not losing financial control. The goal is to ensure that they have a workable financial plan while you are still respecting their financial boundaries without them losing control.
So as your parents move into later life you may want to consider these topics.
A lasting power of attorney (LPA) is a legal instruction nominating an individual to act on your parent’s behalf. The nominated person could be a trusted friend or a member of the family. The LPA would come into force when your parents are unable to look after their own affairs. Without an LPA in place, you may find that you are unable to act in making a financial decision when your parents are unable to do so.
It is never too soon to make a lasting power of attorney as long as your parents are mentally stable and consent to the signing of the agreement.
Would they want to stay in the house with adjustments like a wet room and stairlift? Would they like to move closer to other members of the family? Have they considered assistant living or nursing homes? If so which ones and why?
Having these conversations over time, while your parents are healthy will make the decision-making process easier when the time is right.
This is the third and final article in this series that has been published over the last three weeks.
Having these financial conversations with your parents may be difficult so why not encourage them to involve an Independent Financial Adviser (IFA). A financial adviser will find it easier to ask the questions that a family member may be uncomfortable with. From experience, we find people often put financial planning off, as it would seem complex. This does not need to be the case.
As IFA’s, we provide financial advice that is unbiased. We look at all the options available from the whole market. This is unlike some financial advisers who will only recommend their own products or choose from a limited panel of providers.
Our offices are located at: –
Due to present government guidelines regarding social distancing, we are now making use of video conferencing such as: –
We can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely. Why not contact us today to see how we can help. The initial, “getting to know you”, the meeting is at our expense and without obligation. This helps us to highlight the areas where we can help and enables your parents to see how we operate. When we have a full understanding of the work involved, we will provide your parents with a written quote for the cost if any. We will not undertake any work without their agreement.
If you are a parent of grown-up children reading this article and your children have not raised these questions, ask them why they are not taking an interest in your financial wellbeing? Please feel free to arrange the appointment yourself.
If you have any thoughts or comments about this article, “What do you know about your parent’s finances? Part three.”, then we would love to hear from you.