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Estate planning for financially struggling parents

On Behalf of | Jul 12, 2023 | Estate Planning

Having to think about how your parents’ finances in New York will be handled if they pass away is unpleasant, but often necessary. It is important to know the warning signs that they may be struggling financially so that you can take the necessary steps to ensure their estate is handled properly. Here are some key indicators that your parents may need help with estate planning:

Over-reliance on credit cards

If you notice that your parents are relying more and more on credit cards for purchases, this is a red flag that their finances may be in trouble. They may be using their cards to pay for necessities they cannot afford.

Unexpected or abrupt changes in spending habits

If your parents suddenly change their spending habits, such as making large purchases or withdrawing money from savings, it could be a sign that they are struggling financially. It is important to talk to them and understand why such changes were made and how they plan to pay off the debt.

Excessive borrowing from family or friends

Understandably, family and friends are often more than willing to lend a hand when times are tough. But when you notice that your parents constantly rely on loans from family and friends, this could be a sign that they are struggling to keep up with their bills.

Decline in cash flow

Noticing a decline in your parents’ cash flow is another warning sign that their finances may be in trouble. Suppose their income has decreased noticeably due to job loss, retirement, or other factors. In that case, it is important to discuss their financial situation and help them figure out a budget that will work for their current situation.

If your parents display any of these warning signs, it is important to start discussing their estate planning and ensure they have all their financial affairs in order. Having a plan can make managing their estate easier if something happens to them and ensure that their wishes are carried out properly.


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