Expert advice to plan for helping parents financially

(InvestigateTV) — Around 36% of Americans said they think their parents will need financial assistance as they age, according to a NerdWallet report.

That could mean adult children would pay for things, manage their money, or both.

Elizabeth Ayoola, a personal finance expert with NerdWallet, said they found out 1 in 7 Americans are already stressed about their parent’s financial situation. Many wonder if their parents have enough money, if their finances are organized or if they have an estate plan.

“It is very noble to want to help your parents especially as they are aging,” Ayoola said. “But you have to remember that one day you’re going to retire too so ensure that you’re clear before you have the conversation about which ways that you can support your parents.”

Ayoola urged people to go to their parents and ask them about their financial snapshot. What are their assets? What are their liabilities? And that will give them an idea of where their parent’s finances are and where they can help.

“Another thing to discuss after that, which I think would be a good segue, would be estate planning for the assets that they have told you that they have,” she said. “Do they have an estate plan in place? And if they don’t, maybe you can work together to create one.”

Ayoola said it is a common misconception that only the wealthy need an estate plan. Instead, anyone with children, assets, or items of sentimental value should have a will.

Wills can even help establish what happens to digital assets like social media accounts, emails and smartphones.

Talking to parents about these topics can be hard and awkward. Ayoola said to consider using a financial planner. There are also financial therapists who can be very helpful in these situations.

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