Lauren Nowacki at WSJ Buy Side wrote about how to start the conversation with aging parents about money, and quoted me alongside Elias Friedman of Kadima Wealth.
The article makes the case for starting early, before a medical emergency or cognitive decline forces the issue. It cites a U.S. Bank survey in which 45% of American adults don't know their parents' financial situation even though 85% say talking about it is important, and it lists the topics to cover: income, accounts, bills, debts, legal documents such as powers of attorney and wills, healthcare and long-term care plans, and protection from fraud.
My advice was practical. These conversations are often put off, so expect to need more than one to build trust and gather the information you need. If your parents aren't ready to talk, give them something to fill out. If you can get them to write it down, you might break down that barrier.
I also stressed how you approach estate and end-of-life planning. Keep it about making sure your parents' wishes are carried out, not what you stand to inherit. The second you show a sense of entitlement is the second their defenses go up, and the conversation may never happen again. And be ready for the hard truth that assets aren't always distributed equitably. You can't take it personally. The parent has a reason for doing it, and it might not be something you ever understand.
Read the full article at Wall Street Journal →
