An estimated 16 million Americans find themselves sandwiched between two generations, struggling to raise their children while caring for an aging loved one. These Americans are commonly referred to as the “sandwich generation,” and they are especially stressed over the combination of caring for aging parents, raising their children and planning for their own retirement.
When it comes to the topic of inheritances, many Americans of the sandwich generation say that money is not everything. On the contrary, many of them say their parents' personal items are often as or more important to them.
To address this, a Memorandum may be executed in conjunction with your parents' or your own Will. This is a list of personal property, and it can provide for the property's distribution among your family members or other individuals. Although this document does not create a legal or equitable obligation, as it is not offered for probate as part of your parents' Will, it does express their intent. Since desires regarding the transition of personal keepsakes are often not communicated to heirs, a Memorandum can hopefully eliminate disputes between heirs regarding intent as to who should inherit these personal items.
Those within the sandwich generation must also concern themselves with the disposition of their parents' financial matters; however, discussing personal finances is taboo in many families. Perhaps another approach could be to ask your aging parents how they hope to live out the rest of their lives, their dreams and goals, and worries and concerns prior to discussing more sensitive issues like money, estate planning and their health and welfare.
If you are unable to get through to your aging parents, you may suggest that they talk to their legal or financial advisor about their future. Planning to preserve your aging parents' hard earned accumulated assets for the sake of your children and future generations is not improper. Estate planning not only preserves wealth for succeeding generations; it also gives your aging parent satisfaction and peace of mind.
It is also a good idea to work with your parents to prepare a record of essential financial, legal and medical information. Specifically, you want to include information regarding bank accounts, investment holdings, insurance policy numbers, company names, estate planning documents and professional financial advisors.
Additional concerns of the sandwich generation include funding college savings, contributing to a son or daughter's wedding or other life expenses, and paying for nursing home care for an elderly parent, all the while saving for retirement. You may wish to research a 529 Plan for your children or grandchildren. This is an education savings plan operated by a state or educational institution and designed to help families set aside funds for future college costs. As long as the plan satisfies a few basic requirements, you will enjoy special tax benefits.
By: Todd C. Ratner, Esquire
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Posted by: Assissotom | January 17, 2008 at 05:54 AM