Let’s face it, money and finances are sensitive topics for everyone. Whether you’re just starting out, or planning for retirement, no one wants their financial decisions to be scrutinised. It’s no wonder then that we’ll find any reason not to talk about it. But in (not) doing so, are we effectively putting ourselves (and our parents) at a disadvantage?

If the recent pandemic has taught us anything, it is that life is uncertain and there’s value in being prepared and planning ahead. For our parents, this means making sure that their legacy is protected and, as their heirs, we are prepared to take on the responsibility of looking after what they have spent a lifetime building.

So, how do you start?  What’s the first thing you should do to help them get organised and get you and your siblings up to speed?

We’re here to break it down for you.

Keep Family Dynamics In Mind

Figure out who should be involved in the conversation. If you have siblings, get on the same page beforehand, and remember, the goal of this exercise is to help your family avoid disputes later.

Pick A Time To Talk

Don’t put it off; there really is no time like the present

This is the time to set expectations and clearly understand your parents’ intentions. Some important questions to ask are:

• How should we handle your property and assets? Should we sell it or will someone in the family inherit it?
• Do you have any valuable items you want to be handled in a certain way?
• Who do you want your primary caregiver to be?
• How should we handle healthcare expenses?
• What are your medical preferences? Who do you want your medical proxy to be?
• What are all the important documents we should be aware of and do we have access to them?

Find Out What Their (Estate) Plan Is

Not having a plan in place now will have unwanted implications later. First, it may leave you and your siblings scrambling to put together your parents’ financial picture at an already emotional and difficult time, and second, it can be expensive. The easiest way to avoid this is to start talking to your folks about estate planning. It is a misconception that this exercise is reserved for high-net-worth individuals. Everyone, no matter their net worth, can benefit from ensuring that there are clear instructions for handling all the different situations that one may encounter towards the end of life. One good example for why this is important is that, in India, there is no such thing as a living Will, where one can formally designate a medical proxy. Without having these conversations beforehand and understanding what your parents’ wishes are, this type of thing can lead to a lot of unnecessary familial strife.

Create an asset inventory

Make sure your parents have maintained a list of all the assets they own. All the documents related to these assets should be kept safely, along with account details, passwords, and any other relevant information needed to retrieve the accounts. Make sure you note any digital assets that can only be accessed via secure codes.

Find out if there is a Will and an Executor

A Will is an important legal document that conveys the wishes of the Testator (person writing the Will) regarding his or her estate. Whether you discuss your parents’ estate plan with them ahead of time or not, there is no substitute for a Will.

Without it, the government takes over and assigns Beneficiaries based on a formula that is calculated according to the religious community you belong to.

The process for your family to retrieve your estate this way is long, cumbersome, and costly. The best way to avoid it is to simply make a Will. If your parents do not have a Will in place, or want to make amendments to an existing Will, we can help. Creating a Will with Yellow guides users through a simplified, streamlined process, so they can draft their Will quickly and easily.

If your parents already have a Will, ensure that the Executor named in it is informed and is willing and able to undertake the responsibilities that come with it. Also, insist on having an Executor who is unbiased, honest, and has a good relationship with the Beneficiaries to minimise the scope for any discord in the future.

Nominations On Assets

It is common practice to assign a Nominee for one’s assets. This, however, is not a substitute for a Will as, in most cases, a Nominee is merely a custodian or trustee of the asset until the legal heir (arrived at either through a Will or via the appropriate succession laws) is determined. It is therefore important to ensure that the Nominee and the Beneficiary of the asset named in the Will are one and the same.

That said, certain Nominees concerning a few select asset classes, such as insurance, employee provident funds, gratuity, and pension, also legally inherit the asset.

Special Bequests To Family & Friends

Any special bequest to family members, friends, or loved ones should be clearly stated in the Will. Knowing your parents’ intentions and wishes for their keepsakes will make things much easier when they pass.

The Bottom Line

Basically, it all comes down to this. These conversations may be difficult to have, but not having them will be even more difficult in the long run. Chances are that your parents are as nervous, maybe even more so, about having this discussion with you. Bringing it up first and demonstrating that you want to understand what their wishes are so you can do your best to carry them out may be all they need to open up, so you can work together towards putting a plan in place.

Creating a Will with Yellow is easy, affordable, and much quicker than you’d expect. Point your parents in the right direction and help them to prepare their Will with Yellow today.

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