Estate Planning Tips for the Sandwich Generation
If you are part of the “sandwich generation”—people with both aging parents and minor children of their own—it may be time to consider you and your parents’ estate plans. Many middle-aged adults are putting their own retirement needs aside to care for their aging parents.
Sitting down to discuss your parents’ long-term care needs and end-of-life plans is never fun, but you do not want age or illness to force your hand. Don’t approach retirement unprepared: follow these tips to prepare for your own golden years and protect your assets for your spouse and children.
Taking care of Mom and Dad
First, find out how your parents structured their estate plans and their assets for retirement. Even meticulous retirement and estate plans may not be sufficient to pay for unforeseen medical expenses, long-term care and aging-in-place renovations.
Providing for your spouse and children
If you have been putting off your own estate plan, this is a good time to start. Wills are the bare minimum, as they allow you to distribute assets and appoint a guardian for your minor children.
A smart second step is creating 529 college savings plans for your children. Also, dependent care flexible savings accounts (usually offered by employers) can offer tax benefits while providing for childcare.
Trusts, life insurance and other tools may offer specific benefits for your family’s needs. A financial advisor can counsel you as to how much you will need to save, while an estate planning attorney can help you ensure those assets are distributed appropriately.
The estate planning lawyers at BaumannKangas Estate Law understand the sandwich generation’s unique needs. Reach out today to create your own estate plan.