One of the greatest challenges is getting to the heart of the matter where your parents’ finances are concerned. For example, do you know how much money your parents have? How much they owe? Where they keep their funds? Whether they have life insurance policies? How about medical insurance? Do they have wills?

If you’re a Boomer with aging parents, you should know the answers to these questions – most importantly because, due to illness or death, you suddenly could find yourself responsible for managing their finances.

Yet getting the answers can be tough. Why? One huge reason is that older people often find it unacceptable – even downright rude – to be questioned about their finances … even by their children. They were raised to believe that money matters are deeply private.

Another reason is that it’s not easy to face the negative implications inherently raised by the discussion – Mom and Dad are getting old; soon they may be incapacitated and, inevitably, they will die. We’d better talk about their finances now while they’re still of sound mind.

Who wants to think about any of that, let alone talk about it?

The consequence? Avoidance – on your part and your parents’, and no preparation on your part for when you may have to act for Mom and Dad.

What should you know so that you are prepared to effectively act on behalf of your parents in case of illness or death? Here are several of the most important financial issues:

Income – How much money comes in to your parents? What are their income sources? Do they have company pensions or government pensions such as from military service? Do they receive Social Security payments?

Assets – Get a list of checking and savings accounts and investments such as (401)k accounts, stocks, bonds, certificates of deposit and life insurance polices. Ask your parents to be specific as possible – including providing you the names of financial institutions that hold their assets and the actual names on their accounts. And don’t overlook income from and documentation for assets such as residential and commercial real estate.

Stored assets and valuable documents – Do your parents have safe deposit boxes? Where are they? Where are the keys? Whose names are on the signature cards? Where are their important documents stored? What about valuables such as jewelry, antiques and collectibles? How about birth certificates and their Social Security and driver’s license numbers?

Medical insurance – How much and what types of medical insurance do your parents have? Specifically, what do their policies cover? Do they have supplemental insurance? Do their policies cover long-term care? How are the payments made – a fact you’ll want to know to prevent coverage termination due to payment lapses.

Life insurance – If your parents have life insurance policies, find out the facts. With what companies are their policies? Where are the actual policy contracts stored? What are the terms and conditions?

Wills – Do your parents have wills? If so, where are they? Who do your parents want as executors in the case of their deaths, and who do they want to have power of attorney if they become incapacitated? If your parents don’t have wills, urge them to work with an attorney and create them so they can avoid potentially huge tax consequences.

It’s also important for you to know the names of your parents’ professional advisors including attorneys, accountants and insurance agents. That way, you’ll know where to turn for help and information in the event of parental illness or death.

Financial talk with your parents may not be easy, yet it certainly is important. It will help you help them as they meet the inevitable challenges of aging, and help you get answers now about how to manage the financial responsibilities you may have to assume on their behalf.

(Editor’s Note: Theresa Korpela is a financial services consultant with Wells Fargo Private Client Services in Gig Harbor. She may be reached at (360) 509-2221.).