Estate planning is beneficial for those with children. Parents are often anxious about what might happen to their children in an emergency or after their death. Adult children witnessing their parents age may also feel strongly about estate planning. As they see their parents struggling, they may take steps to ensure they have the support they need as they age. They may also talk with their parents about their plans.
The so-called sandwich generation includes adults who have children of their own to care for while their own parents are in their golden years. They have pressure from both sides as they care for their children and their parents. What basic estate planning moves are important for members of the sandwich generation?
Encouraging parents to plan
The first and most pressing estate planning move to make is often to help aging parents address their needs. If they have not already created a long-term care plan, they may struggle to qualify for Medicaid or to cover the cost of a nursing home. Older parents may expect their children to cover those expenses, but doing so while maintaining an independent home can be quite challenging.
Members of the sandwich generation should not have to sacrifice their home equity or their children’s college savings to support their parents. Helping aging parents address their long-term care needs and plan for incapacity by creating advance directives and durable powers of attorney can limit the complications that arise when parents’ support needs increase.
Address personal vulnerability
People watching their parents decline see firsthand what challenges they may face as they age. In addition to creating a will that designates a guardian for their children and explains how to distribute their property, they may want to create a trust to protect their assets.
Members of the sandwich generation also need to consider what happens if they become incapacitated due to a car crash or a sudden medical event, such as a stroke. Powers of attorney and advance directives can ensure there is someone to manage their affairs, including providing care for their parents and children.
Parents acting as caregivers for their own parents need to create estate plans that center the needs of their children while still recognizing the care needs of their parents. That balance can be difficult to maintain. Discussing support needs and finances with an estate planning attorney can help those in the sandwich generation protect their families. The right documents can go a long way toward minimizing risk for a testator drafting documents and their immediate family members.