In today's world, people are living longer and having children later in life. As a result, many people are in the “Sandwich Generation.”
Here Are Eight Tips You Should Know About Planning For The "Sandwich Generation."
Tip #1 - Who Is A Member Of The "Sandwich Generation"?
A member of the Sandwich Generation has elderly parents and minor children. This often leads to a schism between their caregiving responsibilities for their minor children and their elderly parents.
Tip #2 - How Can The "Sandwich Generation" Balance These Responsibilities?
Don't fail to plan!
Tip #3 - Create A Revocable Trust
A Revocable Trust holds your assets. If you become incapacitated, your successor trustee would step in to manage your assets for the goals and people you’ve stated in your trust.
Tip #4 - Create A Pourover Will
A Pourover Will moves any assets you’ve omitted from the trust into the trust for management.
Tip #5 - Create A Financial Power of Attorney
A Financial Power of Attorney allows another person (your "Agent") to manage any assets outside the trust during your lifetime. Your Agent can also act for you to file your taxes and do other essential financial tasks.
Tip #6 - Create a Healthcare Power of Attorney
A Healthcare Power of Attorney appoints an Agent to make medical decisions for you if you become unable to make them for yourself. Also, a HIPAA Power appoints an Agent to be able to access your protected health information. Without these health care documents, your loved ones may be unable to find out information about your condition.
Tip #7 - Obtain Disability Or Life Insurance
Once you have these basics covered, you’ll have a solid plan in place. However, you also need to consider if you have sufficient financial resources to take care of both your elderly parents and minor child. You may need to consider getting disability or life insurance to supplement your current financial resources. These resources may be needed to replace the income or perform the duties which you took on when you were able.
Tip # 8 - Do Your Elderly Parents Have A Plan In Place?
After you take care of your own planning, you also need to make sure your elderly parents have their planning in place. Imagine your elderly parent falls at the grocery store while shopping with your minor daughter. Your daughter calls you from the emergency room. Without a Healthcare Power of Attorney, the hospital may not release information to you regarding your parent’s condition.