How to Help Seniors Manage Their Finances
Review or set up family trusts.
How to Review or Set up Family Trusts
Many people who have substantial assets set up living trusts so that, when they die, their property can pass to their heirs without first having to go through probate. Others, with even more substantial assets, set up more complicated trusts in an effort to reduce federal estate taxes.
Start by getting copies of all trusts your parents might already have (with their permission, of course) -- trusts they've either created or are a beneficiary or trustee to -- and read through them. Make a list of any questions that come up and go over them with your parents. It's also a good idea to meet with the attorney who drew up the documents to make sure your parents' understanding of the terms is accurate and still reflects their wishes.
If you can't find the documents, check in with the attorney who would have drafted them, ask your parents to look in their safety deposit box, or ask other family members if one of them might have copies.
If your parents don't have a trust and they own valuable property that will not pass automatically to others at death, such as property in a joint tenancy or pay-on-death arrangement, you might suggest that they consider drawing up a trust. They can set one up by consulting legal self-help books and software or by hiring an experienced estate-planning attorney.
