The Sandwich Generation and What You Should Know
The Sandwich Generation & The Need for Estate Planning
If you're in mid-life, juggling the care of both your children and aging parents, you may find yourself part of the "sandwich generation." This stage of life brings immense responsibility, often coinciding with the height of your career, making it crucial to have proper estate plans in place to protect your loved ones and secure their future.
Aging Parents
As you care for your aging parents, ask yourself: Do they have estate plans? Have they appointed powers of attorney for both financial and medical decisions? If something were to happen to you, do they have alternate agents named to step in? Whether or not you are currently a caretaker, now is the time to have open conversations about their estate plans to ensure all is in order.
Many parents may have created an estate plan years ago, but these plans may no longer reflect their current reality. People appointed to make important decisions could be unavailable or have passed away. While estate planning documents don't technically expire, you might run into challenges using a power of attorney drafted decades ago. Regularly updating their documents ensures they remain functional and reflective of present circumstances.
Minor Children
For parents of young children, estate planning becomes essential in case of unexpected events. Who will care for your children if you become incapacitated or pass away? Who will manage the assets they inherit? A comprehensive estate plan can appoint guardians and create trusts to protect your children's financial future, ensuring that assets are properly managed until they reach an age where they can responsibly handle them.
Young Adult Children
Even though your young adult children are legally responsible for themselves, they may still rely on you for support. Should a medical emergency occur, do you have the legal authority to step in? Powers of attorney allow you to make crucial decisions on their behalf. Encourage your young adult children to create their own estate plans, or at a minimum, designate powers of attorney.
Moreover, consider how your adult children will handle an inheritance. While they can legally receive assets outright, will they have the maturity and financial wisdom to manage it well? Creating a trust for them can safeguard their inheritance from outside influences and poor financial decisions.
You
In the midst of caring for both children and parents, don't forget to care for yourself. Who will step in if you are unable to manage your affairs? You need an estate plan that includes powers of attorney, guardians for your children, trustees to manage your assets, and agents to make decisions on your behalf. This preparation ensures your loved ones will be looked after, even if you cannot do it yourself.
Takeaway
Proper estate planning is a must to ensure that each generation is taken care of. This also fosters family harmony by clarifying responsibilities and protecting everyone's future. Make it a priority to review and update your estate plan every 3-5 years or following significant life events like marriage, divorce, the birth of a child, or a change in the people you've appointed as decision-makers.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Contact Russo Law Offices today.