Are you and your siblings united by the need to manage your aging parents’ finances? As parents age, the transition of financial duties to their children can seem daunting, and many parents are reluctant to cede control. However, embracing this shift with respect and kindness can significantly stabilize future financial well-being and foster stronger family ties.
Just like parents teach their children to share, the same lesson can be applied to adult children rallying to help their aging parents: S.H.A.R.E.
S – Synergize efforts
H – Honor parents
A – Assess everyone’s strengths
R – Responsible sharing
E – Effective decision-making
Sharing and effective communication are key for adult children helping their senior family members. If parents are hesitant, children should start the conversation. Recently, I saw siblings who managed their parents’ U.S. investments through open, honest discussions. They began by assessing each other’s strengths and capacities, setting a foundation for shared responsibility and decisions. Initially, the parents weren’t involved, but they were later included to see their children’s cooperation.
Designate Roles
In this case, one sibling was appointed as the financial point person, liaising directly with me, their financial planner. This structure allows for efficient decision-making on routine matters, while still involving everyone in significant discussions, such as risk levels or potential financial shortfalls.
Incorporate Professional Guidance
Engaging a financial advisor specializing in cross-border finance is crucial for families managing assets in both the U.S. and Israel. An advisor can work with your legal and tax professionals to create a strategy that meets the family’s goals and legal needs. Clear communication and defined roles are essential for managing cross-generational wealth. If this seems overwhelming, Profile Investment Services, Ltd. can help. We specialize in handling U.S. portfolios from Israel. Sign up to see how we can help. Get a free Cross-Border Financial Evaluation at profile-financial.com/call.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published September 25, 2024.