The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.
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Talking Finances with Parents
Increasingly, sons and daughters
in their 40s, 50s and 60s are finding
themselves assuming responsibility
for their parents. It's a good idea
before that happens for parents and
adult children to have a talk about
the parents' financial and estate
Children eventually may be asked
to assume responsibility for the
parents, or at least to manage the
parents' money. Knowing where a
parent banks, what life insurance
policies are in effect and whether
retirement assets are available
may make the child's future
What subjects should be covered
when parents have "the talk" with
their adult children?
- Is there a will? The child
doesn't necessarily need to know
what's in the will, just where it can
be found when needed. The same is
true of revocable living trusts. Have
funeral or burial arrangements been
made? If not, what are the parent's
preferences on these subjects.
- Are there life insurance policies?
It may be helpful for the child to
know the cash value of the policies
in the event funds are needed for
the parent's care. It's especially
important for the child to know
whether additional premiums are
due, to avoid having a policy lapse.
- Where does the parent bank?
If the child is asked to assume
management responsibilities at
some point, it's important for the
child to be able to find all those
assets, as well as the location of any
safe deposit boxes and the keys.
- Has the parent provided for
health care directives? Children
should know about the existence of
living wills or health care powers of
attorney (sometimes called "proxies").
If you would like more detailed information on any of the topics discussed, visit our website, www.redcrosslegacy.org.
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© Copyright 2005 The
American National Red Cross. All Rights Reserved.
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