16 Tips on How To Discuss Estate Planning With Your Parents

By
Kate Evans
December 9, 2024
3 mins
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By
Kate Evans
December 9, 2024
3 mins
Share this post

Introduction

Discussing estate planning with elderly parents is a sensitive yet essential task. These conversations ensure that their wishes are respected, and their assets are managed and transferred according to their intentions. While it can feel awkward or even daunting to bring up these topics, a compassionate approach can ease the process. Estate planning isn’t just about money—it’s about protecting your parents’ legacy, ensuring their well-being, and reducing stress for your family during emotional times. In this guide, Kate Evans shares her top tips that will help you navigate these discussions thoughtfully and provide practical steps to cover all key aspects of estate planning.

When Should You Talk to Your Parents About Estate Planning?

The right time to discuss estate planning with your parents depends on their circumstances and readiness. Ideally, these conversations should happen before any urgent health or financial issues arise. Early discussions allow everyone to make informed decisions without pressure. Look for natural opportunities to bring up the topic, such as after a family event or milestone, or when updating your own financial plans. If your parents seem hesitant, approach the subject gently and focus on ensuring their wishes are honoured. The earlier you start, the more time there is to address their goals and create a comprehensive plan.

Tips and Advice for Talking to Your Elderly Parents About Estate Planning

  1. Be Empathetic: Acknowledge that these discussions may feel uncomfortable and emphasise that your goal is to support their wishes, not to take control.
  2. Choose the Right Setting: Find a quiet, relaxed environment where everyone feels comfortable. Avoid stressful or rushed moments.
  3. Start Small: Begin with general questions or observations, like, “Have you thought about how you’d like your affairs handled in the future?”
  4. Use Personal Examples: Sharing your own planning journey can help normalise the discussion and make it feel less intimidating.
  5. Be Patient: If your parents are resistant, don’t push. Revisit the topic later if necessary, allowing them time to reflect.

Request a Meeting with Your Parents

Rather than bringing up estate planning casually, consider requesting a dedicated meeting to focus on this important topic. Frame the request in a way that highlights their autonomy and goals. For example, say, “I’d like to help ensure your wishes are followed in the future—can we set aside time to talk about it?” Setting a specific time and date ensures everyone comes prepared and avoids distractions. Keep the meeting focused, but allow room for questions and emotional responses. A structured approach helps make the conversation productive and respectful.

Communicate Carefully

Clear, compassionate communication is key to successful estate planning discussions. Use open-ended questions to encourage your parents to share their thoughts, and actively listen to their responses. Avoid language that could feel accusatory or controlling, such as “You need to do this.” Instead, use phrases like “How would you feel about...” or “Would it bring you peace of mind if...” Reassure them that these conversations are about ensuring their wishes are respected, not about financial gain or control. Empathy and understanding go a long way in building trust during these discussions.

Focus on What Your Elderly Parents Want

The foundation of any estate planning discussion should be your parents’ wishes. Begin by asking what’s most important to them—whether it’s leaving a legacy, ensuring care for a spouse, or supporting specific causes. Discuss their goals for their assets, healthcare, and end-of-life arrangements. Avoid imposing your opinions or expectations. Instead, position yourself as a supportive partner in helping them achieve their desired outcomes. This approach not only respects their autonomy but also helps identify areas where professional advice or additional planning may be needed.

What Should You Ask Your Parents About Their Estate?

To ensure their plans are thorough, ask questions like:

  1. “Do you have a will, and is it up to date?”
  2. “Who should be your executor?”
  3. “Have you designated a power of attorney?”
  4. “What are your wishes for healthcare and end-of-life care?”
  5. “Do you have any specific legacy goals, such as donations or family heirlooms?”

These questions provide clarity on existing arrangements and help identify any gaps that need to be addressed.

Discuss the Possibility of an Existing Will

Start by asking if your parents already have a Will. If they do, inquire about when it was last updated and whether it reflects their current wishes. A Will ensures their assets are distributed according to their preferences and avoids potential disputes. If they don’t have a will, gently explain the risks of not having one, including prolonged probate processes and decisions being made by the courts. Offer to help them seek professional assistance if needed.

Talk About Power of Attorney

A Power of Attorney is a critical component of estate planning, allowing a trusted individual to manage financial or medical decisions if your parents become incapacitated. Discuss the importance of selecting individuals who understand their values and preferences. Emphasise that this role provides peace of mind, ensuring their affairs are handled responsibly during challenging times. If they seem unsure, suggest consulting a professional to clarify how power of attorney works and what’s involved.

Focus on Health Care Directives

Health care directives document your parents’ wishes for medical treatments and end-of-life care. These directives ensure their preferences are respected, even if they’re unable to communicate them. Ask if they’ve considered creating a Living Will or appointing a healthcare proxy. Discuss scenarios like life support or palliative care in a compassionate manner, and reassure them that documenting these decisions prevents uncertainty and eases the burden on loved ones during emotional times.

headshot of kate evans at lucent financial planning

How to Talk to Your Parents About End-of-Life Issues

End-of-life discussions are deeply personal and require sensitivity. Begin by asking open-ended questions like, “Have you thought about your funeral arrangements?” or “What kind of legacy would you like to leave?” Topics like burial preferences, organ donation, and memorial services may arise naturally. Listen carefully and respect their choices, even if they differ from your expectations. Approach this conversation with empathy, emphasising that the goal is to honour their wishes.

1 Ask About Insurance Policies

Insurance can play a vital role in estate planning. Ask your parents about any life insurance, long-term care, or health insurance policies they may have. Ensure these policies are up to date and aligned with their financial goals. Discuss whether additional coverage might be needed to address potential gaps, such as funding healthcare costs or ensuring financial support for dependents.

2 Request Access to Parents’ Tax Returns

Tax returns provide insight into your parents’ financial situation, including sources of income, deductions, and assets. Having access to these documents can help ensure that their estate planning is comprehensive and tax-efficient. Approach this request carefully, framing it as a way to better understand their finances and assist them in optimising their estate plan.

3 Trusts and Planning for the Transfer of Assets

Discuss whether trusts might be a suitable tool for their estate. Trusts can streamline the transfer of assets, minimise inheritance tax, and provide control over how and when beneficiaries receive funds. Seek advice from an estate planning professional to understand the benefits and whether a trust is a suitable solution for asset transfer. This discussion can clarify their intentions and ensure their assets are distributed efficiently.

4 Identify Key People to Involve in Parents’ Estate Planning

Encourage your parents to identify key individuals who should be part of their estate planning, such as legal advisers, financial planners, or trusted family members. Having the right people involved ensures their wishes are understood and executed smoothly. Offer to help coordinate these meetings if they feel overwhelmed.

5 Discuss All Other Practicalities

Cover practical details like property deeds, digital accounts, and access to safe deposit boxes. Ensure they’ve documented important information, such as passwords and account numbers, in a secure but accessible location. Addressing these logistical aspects prevents unnecessary confusion later.

Get Advice from an Estate Planning Professional

Finally, suggest consulting an estate planning professional to ensure all legal and financial aspects are correctly handled. Professionals can provide tailored advice, resolve complex issues, and ensure that documents are legally binding. Their expertise can offer peace of mind to both your parents and your family.

Conclusion

Talking to elderly parents about estate planning is an act of care and respect. By approaching these discussions with empathy and thorough preparation, you can help ensure their wishes are honoured and their legacy preserved. These conversations might be challenging, but they pave the way for smoother transitions and greater peace of mind for everyone involved.

Disclaimer: This article does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance.

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