Sandwich plans: Dealing with the need for multi-generational planning (Part 1)

Note: This is the first of a multi-part series on planning for the various generations of families. Are you part of the growing “sandwich generation” which is the term often used to describe those boomers who often feel stuck in the middle between the competing needs of their aging parents and growing children. This is a relatively new concern in our society as we come to grips with a number of trends including increased longevity, delayed child bearing and a mobile society in which family members are scattered across the country. Without an effective game plan, these multiple issues can lead to panic, frustration and unnecessary expense and legal proceedings. What to do?  First, step back and evaluate the circumstances.  Are some issues already in need of immediate attention?  If so, they should be addressed first.  Consulting with an experienced and qualified estate planning attorney should be sought as soon as possible. Second, work out a game plan for addressing the needs for each generation. Starting with the easiest for most families,  let’s look at the kids.  If they are still minors, as a parent, you have the legal authority you need to handle their legal concerns.  You generally can control their finances and, if necessary, you can make medical decisions for them.  If you are caring for young persons who are not your children, you may want to consider guardianships or other arrangements to put your authority as to them on firmer legal grounds. Sometimes adoption is an appropriate option. As your children reach age 18 and older, you no longer have automatic authority to make financial or health decisions for them. For this reason, at a minimum, they should execute powers of attorney and advance health care directives to allow you to step in to assist with their affairs should it become necessary. This could be due to a disability or even an accident that leaves them incapable, even temporarily, of addressing their affairs.  If, like most young persons, their personal assets are minimal, additional planning such as wills or trusts can likely be deferred until such time as they accumulate assets. Additional considerations about your children’s planning may be necessary if special factors exist.  These can include their marital status, whether or not they have their own children, special needs they may have due to a disability and other problems that may require special planning such as substance abuse or financial immaturity. We will continue this discussion in the next installment.