If your parents haven’t discussed their inheritance plans with you, there’s a chance that they haven’t discussed them with anyone.
You need to understand where your parents want to keep the money when they die . Being your parents child you also want to ensure that the inheritance transfer goes smoothly. This helps to avoid any disputes from happening.
To ensure that you start of the conversation well about inheritance, simply state that you are want to review your plan for your future finances. It is not imperative that you know what your parents’ plans are but it is important to know if you have any inheritance for you.
It can be difficult to talk about sensitive subjects like death, inheritance, care and health with your parents, but asking will help to give you peace of mind.
For some this is not on top of the list to speak to their parents about their financial plans but it has to be done. Even if the conversation takes 10 or 20 minute conversation, it can make such a big difference!
It is important to also find out if your parents have a Lasting Power of Attorney (LPA) who can help to make decisions on your parents behalf. If your parent’s do not have one if can affect how the money is distributed. Read more here.
Remembers unexpected accidents can happen so you need to be always be prepared.
Ask your parents if they want to go into a care home?
This is an emotional topic, but helps to understand your parents long term goal so that they can enjoy their own life as they age. For example if your parent is unable to live in their home, you need to check if they want you to either sell their property or to rent it out. You can also find out about any savings or insurances they have set aside to cover the cost of care.
Have they made a will?
Surprisingly, two thirds of adults in the UK don’t have a will based YouGov survey.
If your parents die without a will, they will lose control of what happens to their money!
Dying without leaving a will – known as dying intestate – means their estate is divided according to rigid rules.
The first £250,000 will go to their spouse. After that, their children or grandchildren will inherit half of the rest. Unmarried partners, step-children and step-grandchildren are not entitled to anything.
How am I going to pay for their funeral?
Check to see if their is anything stated in your parents life insurance that covers for a funeral.
They say that the average cost of a funeral with a traditional burial is £4,136 and the average cost of a funeral with cremation is £3,214.