Aging Parent Issues – What Issues Should I Consider For My Aging Parents? (2026)
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2026 · WHAT ISSUES SHOULD I CONSIDER FOR MY AGING PARENTS?
Do you need the contact information for your parents’
professionals (financial advisor, accountant, attorney, doctors)?
Do important documents need to be organized?
If so, consider
referencing the “What Documents Do I Need To Keep On File?”
checklist.
Do your parents have an estate plan?
If so, consider the
following (provided that they give consent):
Review the estate plan to ensure it is up to date and includes
General and Health Care Powers of Attorney and a Living Will.
Some financial institutions will not honor Powers of Attorney that
are from out of state or are more than three to five years old.
If your parents will not be subject to estate taxes, but still have
A/B trusts, revisit the need for the trusts and/or review the
funding formula given higher estate exemptions and potential
for step-up in basis planning.
If your parents have trusts, consider whether lifetime
conveyances of certain assets would be helpful (e.g., in the event
of incapacity or in order to avoid probate). (continue on next
column)
Will your parents need long-term care in a nursing home or
home health care?
If so, consider the financial impact it will have
on cash flow and assets. Consider Medicaid planning and reverse
mortgages.
Will a parent's individual estate exceed their remaining federal
estate and gift tax exclusion amount ($15 million, if no lifetime
use), or will your parents' combined estates exceed their
remaining combined exclusion amounts ($30 million, if no
lifetime use)?
If so, consider strategies to plan for a possible
federal estate tax liability.
Do your parents own multiple properties?
Ensure that residency
is clear for probate purposes and to avoid the potential for probate
occurring in multiple states (e.g., with JTWROS titling, or transfer to
a revocable living trust, etc.).
Do the titles of your parents’ accounts (investment and bank)
need to be reviewed or updated?
Consider adding TOD to any
brokerage accounts, POD to any bank accounts, or create a
revocable living trust to avoid passing through probate.
Do any beneficiary designations need to be updated?
Check to
see if all beneficiary statuses have been updated for retirement
accounts and insurance policies.
Do your parents own digital assets?
Steps should be taken to
ensure that digital assets can be managed during potential periods
of incapacity, and will be transferred to heirs (such as updating
estate documents to account for digital assets and signing up for a
password manager).
Do your parents own insurance policies (including life, health,
homeowners)?
If so, consider checking to make sure that coverage
is adequate.
Do your parents have LTC insurance, an LTC rider on life
insurance or an annuity, or critical illness insurance?
If so,
review the benefit triggers for the policy.
INSURANCE ISSUES
YES
NO
Do your parents need assistance in managing their bills?
Could there be sources of income that you are unaware of?
Is a plan needed to deal with a potential illness or reduced
mobility?
If so, consider researching who can assist your parents
in developing a plan.
Are your parents unable to live on their own?
If so, consider the
following:
Your parents’ home can be modified so care can be provided there.
Home caregivers may help with many common household tasks.
Your parents may be able to move in with a loved one.
Professional geriatric care managers may be able to provide
assistance.
Consider continuing care retirement communities as an
alternative living option.
CASH FLOW & LIVING ARRANGEMENTS ISSUES
YES
NO
ESTATE PLANNING ISSUES
YES
NO
ESTATE PLANNING ISSUES (CONTINUED)
YES
NO
© fpPathfinder.com. Licensed for the sole use of Aaron Vaughn of Defiant Financial Services, LLC. All rights reserved. Used with permission. Updated 12/26/2025.
2026 · WHAT ISSUES SHOULD I CONSIDER FOR MY AGING PARENTS?
Could there be property, assets or life insurance that need to
be managed but have not been identified?
If so, consider the
following:
Look at the “points” feature on credit cards and “miles” with
airlines to see if they are transferable.
Check for safe deposit boxes.
Search state agencies and unclaimed property sites that are run
by many state treasurers.
Will there be any expenses that require your parents to sell
any investments?
If your parents have annuities or illiquid assets, do they need
to be reviewed to understand options?
Have your parents reached their RBDs and do they own any
retirement accounts?
If so, consider reviewing their distribution
plans and any automatic transfers scheduled for these accounts.
Are there assets or accounts that should be consolidated?
ASSET & DEBT ISSUES
YES
NO
Are there any state-specific issues that should be considered
(including out-of-state property or estate tax liability)?
If so,
some states have unique rules that can have a material impact, such
as a liability for the surviving spouse to pay for the expenses
associated with the illness of the deceased spouse.
Do steps need to be taken to reduce your parents’ risk of elder
abuse?
If so, consider freezing their credit.
OTHER ISSUES
YES
NO
Will your parents have any deductible medical expenses this
year?
If so, consider the following:
Your parents can deduct qualified unreimbursed medical
expenses that exceed 7.5% of their AGI, which includes:
transportation to healthcare appointments, modifications to a
home or car for medical reasons, LTC insurance premiums
(subject to limits based on age), privately hired in-home
healthcare employees, etc.
Strategies can be used to take advantage of large medical
deductions (such as accelerating income through Roth IRA
conversions or capital gain harvesting).
Are there any capital loss carryforwards on your parents’ tax
return?
If so, consider selling an asset at a gain to offset the
carryforward loss (which will expire, if unused, after the death of
the parent holding the loss).
Are there any unrealized tax losses in an account owned by
your parents?
If so, consider harvesting the unrealized losses or
consider gifting the asset to preserve the loss and avoid the
step-down in basis upon the passing of your parent. Be mindful of
double basis rules by referencing the “Will I Receive A Step-Up In
Basis For This Gifted Property?” flowchart.
Is one parent ill and are there any sizeable unrealized tax
gains in an account owned by a healthy parent?
If so, consider
having them gift the account to the ill parent to potentially take
advantage of a step-up in basis at death. Be mindful of the
one-year “boomerang rule” by referencing the “Will I Receive A
Step-Up In Basis For The Appreciated Property I Inherited?”
flowchart.
TAX PLANNING ISSUES
YES
NO
© fpPathfinder.com. Licensed for the sole use of Aaron Vaughn of Defiant Financial Services, LLC. All rights reserved. Used with permission. Updated 12/26/2025.
Aaron Vaughn
30400 Detroit Road Suite 305a Westlake, OH 44145
aaron@defiantservicesllc.com
| 440-385-0208 |
www.defiantservicesllc.com
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