By Liz Maroney, Westlawn Wealth Adviser 19 August 2014
Is it time you sat down and had a serious chat to your parents?
Well, perhaps not so much a serious chat as a friendly family discussion … about their finances in retirement and how the family’s assets will be passed onto future generations.
While we don’t like to contemplate life without our loved ones, having the conversation now could make all the difference for when the time inevitably arrives. Planning for the smooth distribution of assets now will help maintain family harmony throughout a difficult time.
And in the meantime, you want your parents to have the financial security to really enjoy their retirement. After all, they deserve it, right? Having put up with you throughout those difficult teenage years and quite possibly saving you a small fortune in free babysitting.
What to ask mum & dad
So, put the kettle on, sit down in a comfy chair, get relaxed and ask mum and dad these 7 crucial questions. It really won’t be as awkward as you might imagine.
1. How recently have you reviewed your investment portfolio with your advisor to ensure it reflects your risk tolerance and meets your retirement needs?
2. Does your financial plan provide sufficient cash flow to support your lifestyle in retirement? And have you made an allowance for any additional expenses such as medical costs or aged care?
3. Do you have appropriate Powers ofAttorney in place for managing your finances and/or Health Directives if you’re no longer able to make your own decisions?
4. Do the Wills you have in place reflect your current wishes in regard to executors, distribution of your assets and any charitable donations you wish to make?
5. Do you have an estate plan in place that ensures your assets are passed onto future generations according to your wishes? Have you considered testamentary trusts for any child beneficiaries (or other family members who may not be in a position to act responsibly with any inheritance)?
6. Who are the key people involved in your financial affairs, such as your financial advisor, accountant and solicitor?
7. Where are your important documents stored and have you made clear instructions on how to manage your estate?
There, now that wasn’t so hard, was it?
Your Westlawn Wealth Advisercan provide you and your family with advice on tax-effective estate planning to protect your family’s wealth for future generations. Contact us today on 02 6642 0433.
General Advice Warning The advice on this site may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial, tax and/or legal advice prior to acting on this information.
Westlawn Wealth Management Pty Ltd ABN 32 124 861 409, Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749, Australian Financial Services Licensee, 105 -153 Miller Street North Sydney NSW 2060.