Aging comes with unpleasant worries that seniors must face in order to secure their future. Even if they have already completed their estate plans, that is not the end of the process. Any time there is a significant change in life circumstances, seniors must update the plans for the best outcome for themselves and their loved ones.
As you help your aging parents prepare for the future, pay attention to the following changes so you can advise them to make modifications to their estate plans.
Marital breakups do not just happen to the young. Seniors are divorcing at increasing rates, shares CNBC, with significant consequences on finances and retirement plans. If your parents are heading toward divorce, now is the time to have them update their estate plans. This applies not only to wills but also to powers of attorney and other types of representation.
2. Change in beneficiaries
Has someone broken away from the family or adopted new children? Whenever there is a death, disinheritance, marriage, divorce, birth or adoption in the family, your parents need to revise estate plans so they meet current circumstances. It would be devastating if a new loved one received nothing. Also, moving to a new state requires reviewal to ensure compliance with state law.
3. Decline in health
When your parents develop an illness or the ones they already suffer from take a turn for the worse, the situation can make the prospect of passing on more real. Your parents may have to re-ask themselves some hard questions about the medical treatment, living arrangements, end-of-life care and funeral plans they want now that these things are immediately relevant.
4. Change in finances
Whether your parents inherit money from a relative or lose funds in a scam, a change in finances means a change in estate plans is necessary. Your parents may also want to consult with financial advisors on how best to handle the increase or decrease in money to keep it secure so they can continue to have a comfortable life.