Helping Aging Parents with Their Finances: A Guide for Boerne Families

More than 11 million Americans care for an adult family member while raising children at home. This “sandwich generation,” made up largely of Generation X couples, faces a unique challenge: balancing the needs of their children, aging parents, and their own financial future.

Caring for aging parents requires careful planning and patience. By taking proactive steps, Gen X families in Boerne and surrounding areas can support their parents, protect their own finances, and avoid unpleasant surprises down the road.

At McCammon Law in Boerne, we understand the importance of estate planning when navigating these challenges. Below, we’ve outlined actionable steps you can take to manage your aging parents’ finances.

Know What Assets Your Aging Parents Have

The first step in addressing your parents’ financial situation is understanding their assets and liabilities.

Identify Key Assets

Make a list of their assets, such as:

• Retirement accounts (401(k)s, IRAs, etc.)
• Investment portfolios
• Real estate holdings
• Valuable personal property

Understanding what they own can help you plan for their future needs and ensure proper management of their estate.

Review Outstanding Debts

Don’t overlook liabilities like:

• Mortgages
• Credit card balances
• Personal or business loans

Knowing both assets and debts will give you a complete picture of your parents’ financial situation.

Understand Their Income

Evaluate Income Sources

Review your parents’ income streams, such as:

• Social Security benefits
• Pension payments
• Annuities
• Rental property income

Understanding their cash flow can help you determine whether their current income is sufficient to meet their needs or if adjustments are necessary.

Discuss Their Estate Plan

Why Estate Planning Matters in Boerne

Having an estate plan ensures that your parents’ wishes are honored and that assets are distributed as they intend. Discuss the following documents with them:

• Wills: Do they have an updated will in place?
• Trusts: Have they established any trusts to avoid probate or minimize taxes?
• Powers of Attorney: Who has the authority to make financial or medical decisions if they become incapacitated?

For guidance on how to discuss this personal topic with your aging parents, read our article, What Happens If Aging Parents Won’t Discuss or Are Ill-Informed about Estate Planning?

Start the Conversation Early

Many families hesitate to discuss estate planning, but having these conversations early can prevent confusion and disputes later. If your parents don’t already have an estate plan, encourage them to work with an estate planning attorney.

Plan Early for Healthcare and Long-Term Costs

Anticipate Rising Expenses

As your parents age, healthcare costs may increase significantly. Long-term care, medications, and in-home support can add up quickly.

Explore Options for Coverage

Talk with your parents about how they plan to cover these expenses. Consider:

• Long-term care insurance
• Health savings accounts (HSAs)
• Medicaid eligibility

Planning now can help ensure they have access to quality care when they need it.

Protect Against Financial Abuse

Stay Vigilant

Seniors are often targets for scams and financial fraud. Be on the lookout for signs of financial abuse, such as:

• Unexplained withdrawals from their accounts
• Sudden changes to wills or powers of attorney
• Suspicious new "friends" or caregivers

Take Preventive Measures to Protect Your Parents' Finances

Help your parents protect themselves by:

• Monitoring their accounts for suspicious activity
• Educating them on common scams
• Encouraging them to consult you or a trusted professional before making significant financial decisions

Work with an Experienced Boerne Estate Planning Attorney

Caring for aging parents involves navigating complex legal and financial issues. An estate planning attorney can help you:

• Develop a comprehensive estate plan for your parents
• Address healthcare directives and powers of attorney
• Manage intergenerational wealth transfers

If you’re in Boerne, New Braunfels, or San Antonio, McCammon Law, P.C. is here to help guide your family through these important decisions.

Take the First Step Today

Helping your aging parents manage their finances doesn’t have to be overwhelming. By taking proactive steps, you can protect their financial well-being and ensure their wishes are respected. Request a consultation with McCammon Law for support with aging loved ones and personalized estate planning services.

Reference: Kiplinger (June 5, 2023) “What Gen X Needs to Know About Their Aging Parents' Finances”