Okay so that wasn't the snazziest title. I suppose I could have just written, "I have a lot of work to do!"
The Wall Street Journal had two articles (or one article and one follow up) that freaked me out a bit. Basically it discussed what can happen when someone you know (and hopefully love) - in this case a parent - needs to have you take over their finances. This can be when they are alive or when they are dead. It's often a huge mess as the links below point out.
What would happen if someone stepped into your financial shoes - literally? I thought about my own finances and various accounts and passwords as I read the articles. It's a mess. I need to clean it up and make it very clear for someone else. I also need to figure out what my Darling Parent has in terms of accounts etc. It's a huge project but once it is done everyone will feel better.
Please have a read. The Wall Street Journal has a lot of articles that require a subscription. If this is the case please do an online search of the title of the article in the hopes it was posted somewhere else for free. They have fab info in them so definitely worth the read!
The Difficult, Delicate Untangling of Our Parents' Financial Lives
Reader Tips on Dealing with Aging Parents' Finances
Happy April to all!
Pru
My parents had a meeting with all their kids to make sure their wishes are clear--it's an uncomfortable conversation to have but hopefully prevents misunderstandings in the long run. It was a sit-down with a financial adviser prior to everything going to the lawyer to be updated (they always had a will of some kind in place, but things change over the years). Their case is a bit more complex because they own a lot of land, farm equipment, cattle, etc and have 5 children, 2 of whom have invested and worked on building up the farm. It became clear to me that we really needed to do up our own wills and have our papers in order, especially regarding guardianship of our children. I now have a folder with all our account numbers, passwords, list of debts and assets, wishes etc, bills of sale, or the directions where to find documents that would be needed. Our wills are not back from the lawyer yet but it does give me peace of mind knowing that we have life insurance and a plan made. We sometimes travel without the kids and I always worry. Being able to find the information you need is so important, and makes a sad, stressful situation a bit easier.
ReplyDeleteIt's wonderful your parents had this meeting.
DeleteI am so glad that you are so organized - but somehow I am also not that surprised! :-) And you are right it will make a stressful situation easier.
I have spoken to Darling Parent but we have not exchanged any info. I have a will and all the other goodies but really need to work on reducing accounts and writing down info in an organized manner.
Well someone can't step "literally" into your financial shoes! No one has finacial shoes in the literal sense! Hahaha.
ReplyDeleteGreat article shares. I truly try to get as organized as possible and have some documented instructions but not near enough. Something for me to sort out this calendar year for certain.
Hi Janna! Thanks for commenting. I thought I was organized but it is that type of organization that only I can understand. This is definitely something that is on my "to do" list for this year.
Delete~ Pru
I recently made a master password list for all of our accounts - as long as I remember to keep it updated...
ReplyDeleteI'm not looking forward to dealing with my parents affairs as they are a complete mess and my mom is not willing to divulge any info.
Your mom sounds a bit like me :-) Of course make sure BeachPapa knows where the master list is. I have one (for the most part) but only I have access to it so that won't help anyone.
DeleteThanks for commenting!