10 Things to Ask Your Parents: Estate Planning to Prepare for the Future

As our parents grow older, planning becomes more than a thoughtful gesture—it's a necessity. Whether preparing for a time when they can no longer manage their affairs, deciding on late-life care, or end-of-life arrangements, ensuring the following ten essentials are in order can make things easier when the time comes.

1. Prepare an Enduring Power of Attorney

This legal document designates someone trustworthy to make financial and medical decisions on your parent's behalf if they become incapable of doing so themselves. Discussing and documenting who will be appointed is essential while everyone is of sound mind.

2. Update and Have Access to the Will

Your parent's will is the key to handling their estate as they would want, so knowing its exact location allows you to act quickly if necessary. Ensure the document is easily accessible, valid, and up to date before it's needed.

3. List of Professionals

Be sure to have a list of any professionals your parents use for their estate, including their lawyer and accountant.

4. Provide Access to Paperwork

If your parents keep their paperwork somewhere, be sure to know where. If keeping the documentation in a safe, a deposit box, or with a professional, ensure that you have access to the code or the details of their representative when the time comes.

5. Update Financial and Legal Documents

It's essential to ensure that your parents' financial and legal documents are up to date. This includes tax records, bank account details, and personal identification information. Keeping this documentation organised will make it easier for you to manage their affairs after they pass away, avoiding delays or complications.

6. Check Superannuation and Beneficiaries

It's crucial to know whether your parents have a super account, who the non-lapsing binding death nominated individual is to handle the funds, and who the nominated beneficiaries are. Confirm the specifics and ensure that the beneficiaries are still relevant beforehand.

7. Make a List of Logins

Creating a list of logins, passwords, PINs, online accounts, and parties to be notified after death will make the notification process much more manageable. Policies like life insurance should be documented, including premium details and the beneficiaries. This will prevent confusion later and ensure claims are processed smoothly.

8. Understand Assets and Debts

Having a list of your parent's assets and any outstanding debts is essential in managing their financial affairs when they pass. A clear record of your parents' assets and investments may include any property, shares, bank accounts, and any other valuables or assets. Do the same for debts, and include mortgages, personal loans, credit card debt, or other financial obligations. Having a complete list of both will make it easier to handle the distribution of the estate and avoid misunderstandings.

9. Final Wishes and Health Care Preferences

Ensure you understand your parents' final wishes regarding health care and end-of-life decisions are recorded. This may include having an enduring power of guardianship or an advanced health directive. One allows another person to make decisions on your parent's behalf while the other records their wishes. Any end-of-life wishes should be documented to avoid unnecessary stress or conflict when the time comes.

10. Pre-Plan Funeral Arrangements

Discussing funeral arrangements and paying in advance can save the family financial stress at an already difficult time. Working with your parents to record their wishes or help them pre-plan and pay for their funeral will ensure everything is organised as they would like.