Caregivers in the sandwich generation often support their parents and their children.
Millions of Americans can be classified as members of the sandwich generation.
No, this does not mean this generation has a statistically higher approval for peanut butter and jelly or deli meat.
Rather, the sandwich generation refers to individuals who are caring for both older and younger family members.
Often, these are parents in their 40s or 50s.
Caring for aging parents while raising children demands emotional energy, financial resources, and time.
Amid these demands, estate planning can quickly be neglected.
To secure the stability of the whole family, caregivers in the sandwich generation should prioritize clear and strategic estate planning.
Sandwich generation caregivers have both aging parents and young children relying on them for support.
Supporting two generations can be challenging, as their needs and priorities often conflict.
Days can involve a combination of attending school events, taking an aging parent to the doctor, or reviewing insurance paperwork.
The demands of these different responsibilities can impact finances, relationships, and careers.
National data indicate that approximately 30 percent of sandwich caregivers support aging relatives and their own children financially.
While caregiving is necessary when aging parents lose their independence and require additional help, the ability to provide support can be complicated or restricted when the necessary legal documentation is not in place.
It is best to have a legal plan in place before the need for support from the sandwich generation arises.
Anyone caring for aging parents will need to confirm that they have an up-to-date estate plan, including an advance health care directive, a standalone HIPAA authorization, a general durable power of attorney for finances, a last will and testament, or a living trust.
Why are these documents essential?
They can be used to give caregivers or other trusted individuals the authority to make key decisions when the supported party cannot do so.
If these documents do not exist, then loved ones will have to petition the courts for legal authority.
Court proceedings can be expensive, lengthy, and stressful.
Does that sound like fun?
I can assure you that it is not.
To avoid this negative outcome, initiate open conversations with your parents about aging needs.
Ask them about medical care wishes, the existence of long-term care insurance, and their desire for living situations.
By having these conversations now, wishes can be codified legally before there is a need for the documents.
Consequently, adult children can have greater confidence in supporting their aging parents.
In addition to ensuring that affairs are in order for aging parents, caregivers in the sandwich generation must also take action to protect their children.
Guardians should be named for minor children in a last will and testament.
Purchasing life insurance and establishing trusts to manage inheritances for children can provide greater financial security.
Why might trusts be recommended?
Minor children cannot inherit assets outright.
With trusts, assets can be managed by a trusted adult until children reach a specified age or even long-term.
When minor children are left assets without a trust, the court will have to intervene and decide who will rear the children and how the money will be distributed.
Yikes!
To prevent this scenario, you should create an estate plan and update it regularly as your family dynamics change and your children get older.
Burnout is a significant issue facing caregivers.
Those providing care to dependent children and aging parents often do not prioritize their own health and financial needs.
While those in the sandwich generation may think it noble to put off their own estate planning, it is not.
Caregivers need their own advance health care directive, a standalone HIPAA authorization, a general durable power of attorney for finances, a last will and testament, or a living trust to protect their dependents in times of crisis or loss.
Organizing documents and creating a list of essential contacts is also key to preparing for emergencies.
If you do not yet have an estate plan in place, you can request a consultation with us at Harvest Law KC.
Both caregivers and aging parents need to prioritize estate planning.
Essential estate planning documents enable their adult children to provide key support for aging parents.
While members of the sandwich generation care for their parents and their children, it is important to have guardianship designations and trusts in place to provide security for minor children if both parents were to die.
Although discussing estate planning and incapacity can be uncomfortable, it is essential to ensure that all parties are prepared.
Taking legal steps to plan for unpleasant circumstances can provide security and support for loved ones.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
References: National Alliance for Caregiving (November 2019) "BURNING THE CANDLE AT BOTH ENDS: SANDWICH GENERATION CAREGIVING IN THE U.S." and Union Bank & Trust (July 27, 2022) "Journey looks at estate planning for the sandwich generation"
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