A guide to helping your parents - USAA

A guide to helping your parents

Start building a plan
Step One:
■ Begin communicating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
This Guide to Helping Your Parents is a workbook
of four steps to help you assist
with your parents’ care and finances.
And if you need assistance along the way, call
our Financial Advice Center:
(800) 292-8972
or visit usaa.com
Step Two:
■ Review legal documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Step Three:
■ Update financial documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Step Four:
■ Record key information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
When it’s time to move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
We’re here for you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Step One : Begin
communicating
Your parents will likely need your assistance at some
point in their lives. You might need to help by paying your parents’ bills, driving them
to doctor appointments, arranging nursing care or administering their estate —
today, tomorrow or in five years. There are things you can do now to make life
easier for you and your family.
■ Start small. Gently determine if your parents will
permit you to help by offering to assist with routine
tasks. You could also suggest enlisting family help.
For instance, your parent may agree to let a grandchild
assist by promoting the arrangement as quality time
together. If necessary, hire outside help.
■ Follow through. Do what you’ve promised. After
you’ve reached a mutual understanding, you must be
sure that you and other family members continue to
help your parents the way you’ve agreed to.
Talk with your parents
First, let your parents know you want to help
preserve their choices. Include other family members
who will be involved in their care.
These tips may help you begin:
■ Have a family discussion. Decide who will be
included in planning and decision-making. Be honest
with one another about concerns. Discuss how each
family member could assist, and form a “caregiving
team” with a designated “team leader.”
■ Watch for cues. Pay attention to your parents’
behavior. Ask their physicians, neighbors and friends
to help you look for significant changes in capacity.
Make a note of any changes and discuss them with
your parents to open a dialogue about activites they may
need help with.
■ Prepare an agenda. Make a list of things to
discuss with your parents. Be flexible and sensitive,
discussing one issue at a time.
■ Be respectful. Your parents know best what they
want and need. Ask them if they’ve already taken
steps to ensure their wishes are preserved. Pay
attention to their emotions as well as verbal and
nonverbal cues.
■ Try an icebreaker. It’s often effective to open
dialogue by talking about your own plans or telling a
story about a friend in a similar position. Then you might
ask what they would prefer in those circumstances.
■ Review possibilities. Explain to your parents
all the different ways you could help. That way they
won’t be uncomfortable asking. Talk about what type
of support network might be formed. Always preface
suggestions with your concern for their welfare.
■ Prepare an initial plan. Be sure to capture all
things your parents indicated they need help with.
Identify how you will follow through. Communicate
these expectations with other family members.
■ Ease tensions. If you encounter family tensions
or resistance, consider asking for third-party help.
Your parents’ physician or a trusted adviser may be
willing to moderate a meeting or suggest resources.
If you do this, tell your parents beforehand so they
don't feel surprised or betrayed.
Nearly one in four U.S. households are
involved in caregiving to persons aged
50 or older.
— National Alliance for Caregiving
and the American Association
for Retired Persons, June 1997
4
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Call (800) 292-8972

Step Two : Review
legal documents
Organize the estate
Spend time now ensuring proper legal documents and
instructions exist so you can help ensure your parents’
wishes are carried out. Your parents' advisers may
assist you in understanding their arrangements.
Review your parents’
arrangements…
Wills
Wills determine what happens to money and
possessions and who becomes the guardian of
minor children. Review your parents’ wills if changes
occur due to marriage, divorce, adoption, inheritance,
or relocation to another state.
Living Wills
Living wills can specify your parents’ healthcare
instructions should they become too ill to state
their wishes.
Durable Powers of Attorney
These can be separate documents for legal matters and
healthcare decisions. They specify who will make decisions
for your parents if they can’t. Powers of attorney are
prepared by an attorney under state laws and should be
reviewed about every five years.
Trusts
Trusts legally hold property for the beneficiaries. Your
parents may use a trust to have some control over how
heirs will use assets. Trusts may allow an estate to avoid
probate and reduce federal estate taxes.
Business Assets Transfer
If your parents are business owners, they can predetermine
what will happen to their business assets through legal
documents and possibly life insurance.
Check for other instructions
Letters of Instruction
Your parents may use these documents to specify funeral
wishes, people to contact, where to find their wills, tax
returns, insurance policies, and other key papers.
Funeral Arrangements
Find out if your parents have preplanned final arrangements.
Knowing this can relieve stress at a difficult time and can
help control the ultimate cost of a funeral.
Tax Consultant/Financial Adviser
Your parents may want your help with tax matters or to
consult with their tax or financial adviser to determine
steps necessary to minimize or eliminate the impact
of federal or state estate taxes. Their advisers may also
be aware of additional instructions regarding your
parents’ finances.
Investment Adviser/Broker
If your parents’ investments are managed by a professional,
you should be aware of their basic investment holdings in
case you need to help make decisions.
RECORD INFORMATION IN THE BOXES BELOW:
Wills
Location:
Living Wills
Location:
Durable Powers of Attorney
Location:
Trusts
Location:
Business Assets Transfer
Location:
Letters of Instruction
Location:
Funeral Arrangements
Contact:
Tax Consultant/Financial Adviser
Contact:
Investment Adviser/Broker
Contact:
Attorney
Contact:
It might be time
to consider…
Financial planning and
advice. Your parents may have a
financial plan or they may need one.
A complete customized plan can help
avoid costly mistakes. USAA offers
free financial advice and affordable
financial planning services ranging
from hourly consultations on specific
topics to detailed comprehensive
planning.
Keep in mind…
When an attorney drafts
a trust for your parent, USAA
Federal Savings Bank can serve as
the trustee. We provide professional
trustee services for competitive fees.
Our Trust Services are built on the
legacy of commitment and service
that you expect from USAA.
6
Call (800) 292-8972

Step Three : Update
financial documents
Know about benefits
Insurance policies and retirement plans can provide family
members with financial security in the years ahead. It’s
important that all documents contain current information.
Review your parents’
insurance policies...
Life Insurance Policies
Review a policy’s ownership, beneficiaries and coverage
amount every few years and after life events to ensure the
policies still reflect your parents’ needs and wishes. Find
out if your parents have life insurance, the types of policies
they have, and when the policies were last reviewed.
Health/Medical Insurance Policies
Ask your parents if they have health insurance and record
the types of policies they own. There are four main types
of coverage that help protect assets:
■ Major medical insurance helps pay the rising costs
of medical care.
■ Disability income insurance helps pay living expenses
when illness or injury affects employment income.
Auto/Property Insurance Policies
Most policies include liability coverage, and all policies
should be adjusted as needed to ensure the right amount
of coverage. For example: property insurance may be
adjusted if building costs change significantly; auto
coverage should be modified if a parent stops driving.
RECORD INFORMATION IN THE BOXES BELOW:
Life Insurance Policies
Date Reviewed:
Types of Policies:
Location:
Health/Medical Insurance Policies
Date Reviewed:
Types of Policies:
Location:
Keep in mind…
USAA Life offers free
life insurance reviews to
ensure your parents’ policies keep
pace with their changing needs.
During the review, we can create
a record of how the life insurance
benefits should be used through
a Life Insurance Blueprint ® . We’ll
keep this Blueprint on file and
provide guidance to loved ones
based on your parents’ wishes.
The Blueprint is not binding and
can be accessed on usaa.com
or by calling a member service
representative.
■ Long-term care insurance helps pay the cost of
health care in the home or at a facility.
tip Your parents may be among the
estimated 20 million people eligible for the
■ Medicare supplement insurance helps pay some of
the costs that Medicare doesn’t pay for.
Federal Long-Term Care Insurance Program to
help pay the cost of long-term care services.
With this group coverage, your parents would
Auto/Property Insurance Policies
Date Reviewed:
pay premiums just like with an individual plan.
It’s a good idea to research all options before
Types of Policies:
deciding to purchase. USAA’s long-term care
specialists can help identify an appropriate
plan for your parents’ situation.
Location:
8
Call (800) 292-8972

Review your parents’
retirement plans...
Pension Plans
Your parents may have several pension plans with
different benefits, payout schedules, and beneficiary
designations. They may ask you to help obtain benefits
for them. If possible, note the types of plans, sponsors,
and locations of any documents.
IRA, 401(k)/Annuities/
Other Retirement Plans
Your parents’retirement accounts may be a key source
of income for their daily living expenses. With their
consent, note some information about the types of plans
your parents participate in so you can help them access
the benefits.
Military Retirement Plans
Military retirement can involve different plans. All plans
should be updated if any personal information changes.
With your parents’ consent, record information about
their plans so you’ll know how to help them obtain the
benefits, if necessary.
tip You can get updated information on
tax reform and recent tax legislation related
to USAA’s products at our Tax Help Center
on usaa.com (enter u8p004).
RECORD INFORMATION IN THE BOXES BELOW:
Pension Plans
Date Reviewed:
Types of Plans/Sponsors:
Locations:
IRA, 401(k)/Annuities/Retirement Plans
Date Reviewed:
Types of Plans/Sponsors:
Locations:
Military Retirement Plans
Date Reviewed:
Types of Plans/Sponsors:
Locations:
If your parent
is age…
60
(if surviving
spouse and not
remarried)
62
65
70 1 / 2
85 – 95
After-60
Financial Timeline
Then it might be time to…
Begin collecting spouse’s Social Security benefits.
Begin collecting Social Security benefits, but
starting this early reduces monthly benefit
by 20 percent.
Start collecting full Social Security benefits.
Take advantage of Medicare eligibility.
Start taking required minimum distributions on
the next April 1st from Traditional IRAs and most
employer-sponsored qualified retirement plans.
(Roth IRAs are not subject to required minimum
withdrawals during the owner's lifetime.)
If money is rolled over from a retirement plan
to an IRA, minimum distributions from the plan
must be taken before the rollover is completed.
Review annuities funded with after-tax dollars
to determine if the contracts require payments
to begin.
It might be time
to consider…
Annuities and long-term
care insurance. An annuity,
when combined with long-term
care insurance, can give your
parents an opportunity to build
and protect assets.
• Annuities build tax-deferred
money and can provide
lifetime income.
• Long-term care insurance
can protect that income
from depletion.
With the high cost of long-term
care services, it’s important to
protect your assets with insurance
so they are available for retirement
or other purposes.
Keep in mind…
If your parents are
retired from the military,
they may have unique questions
and concerns about their benefits.
Our specially trained retirement
counselors can answer their
military-related retirement
questions.
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Call (800) 292-8972

Step Four : Record
key information
Know where to go and
who to call
With your parents’ consent, record where personal
documents reside and note other important information
you may need later. Use the extra space under “Notes”
in the back of this Guide if you need more room.
Ask your parents about…
RECORD INFORMATION IN THE BOXES BELOW:
Deeds
Location:
Birth Certificates
Location:
Location:
Marriage Certificate
Location:
Divorce Decree
Location:
Social Security Documents
Location:
Keys
Items:
Location:
Driver’s License Numbers
Numbers:
Bank Accounts
Companies/Account Numbers:
Mortgages
Companies/Account Numbers:
Auto/Consumer Loans
Companies/Account Numbers:
Personal Loans
Companies/Account Numbers:
Memberships
Names of Organizations:
Location:
Location:
Car Titles
Location:
Location:
Safe-deposit Boxes
Location:
Location:
Investment Accounts
Companies/Account Numbers:
Medications: Prescription/Non-prescription
Name:
Dosage:
Military Benefits Documents
Location:
Location:
Other Items in Safekeeping
Items:
Credit Cards
Companies/Account Numbers:
Location:
Veteran’s Administration Documents
Location:
Items:
Claim Numbers:
Location:
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Call (800) 292-8972

Ask them who they rely on…
RECORD INFORMATION IN THE BOXES BELOW:
Family Members:
Contact Name:
Phone Number:
Physicians:
Contact Name:
Phone Number:
Utilities:
Contact Name:
Phone Number:
It might be time
to consider…
An emergency savings account.
Your parents may need your help moving
unexpectedly or paying for medical care or
monthly bills — so it’s important to have
quick access to money.
There are several ways for you and your
Dentist:
Contact Name:
Phone Number:
parents to arrange an emergency fund. A
Power of Attorney may obtain access to an
existing account of your parents’. Or, you and
your parents can open a joint savings, checking
or investment account for emergencies.
Pharmacy:
Contact Name:
USAA Federal Savings Bank and USAA
Investment Management Company offer
a variety of options to meet your needs.
Friends/Neighbors:
Contact Name:
Phone Number:
Phone Number:
Veterinarian:
Contact Name:
Phone Number:
Church:
Contact Name:
tip Your parents can take steps now to
organize their assets for loved ones with a free
Planning for Survivorship guide.
Note that a joint account, if registered as Joint Tenants with Right of
Survivorship, may be excluded from the estate if your parents were to
pass away. This and other family concerns should always be
discussed with family members and your financial adviser/estate
planner prior to entering into any financial agreement.
Keep in mind...
If you are suddenly faced with
survivor issues, USAA’s assistance
teams can help minimize your family’s stress
by providing guidance on what to do. Contact
us anytime to discuss survivor issues.
Phone Number:
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Call (800) 292-8972

When it’s time to move
Things to think about
Moving is always stressful. If your parents plan to
move, be sure to discuss their relocation concerns with
them and other family members and clarify your role
in assisting them.
If you’re faced with helping your parents move
unexpectedly, you may have to pay to move items
or to clean or repair their current residence. A jointly
owned emergency fund can provide quick access to
money as needed.
If your parents are moving to a new community,
the local newspapers and Chamber of Commerce
can provide information, and a local realtor may have
a “welcome kit” with phone numbers of resources.
Are they driving safely?
If your parents move to an unfamiliar area, they may
drive less frequently and their driving skills may decline.
The question of your parents’ driving ability can be an
emotional one.
Watch for changes in their response time, vision, or hearing
to help determine if they should alter their driving habits
or stop driving for safety reasons. You should express any
concerns with your parents and other family members.
If necessary, talk to their doctors and others they respect,
such as clergy and friends. Encourage them to avoid
driving on busy roads or at night and to rely on public
transportation. If your parent cannot drive safely, you
may need to enlist help from others to help them stop.
When they live far away
Families frequently live far apart, making it difficult to
communicate with family members about caregiving
issues. As your parents age, the distance between
you can make it difficult to be there when needed.
Here are some tips:
■ Call or visit your parents and use this Guide as an
outline to discuss their needs.
■ Keep copies of your parents’ important papers, contact
information, and the Yellow Pages that serve your
parents’ community. Make a note of senior resources
in their area.
■ Have a back-up plan to provide emergency care in case
you’re not available, and ask nearby friends or relatives
to check on your parents regularly.
■ Set aside money for emergencies.
■ Consider an emergency monitoring device so your
parents can alert a designated person or authority to
assist them if necessary.
It might be time
to consider…
USAA MoversAdvantage ® free real
estate assistance. This program helps eligible
members sell or buy a home anywhere in the
United States and offers:
• Access to a USAA-certified real estate agent.
• Information on the new community and relocation
tips and ideas.
Keep in mind…
If your parents are buying or renting
a new house, condominium, or apartment, they may
want to purchase property insurance to protect their
belongings and personal liability. To meet the needs
of eligible members, USAA has Homeowners,
Condominium, and Renters Protection insurance.
If your parents experience difficulty
with mobility or have a permanent medical
condition, you may want to consider the benefits
of home security. ADT Security Services offers
USAA members special savings on installation and
24-hour-a-day monitoring for medical emergencies
as well as fire and burglary.
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We’re here for you
USAA is committed to offering you and your family a lifetime of excellent products and services.
How USAA can help
Financial planning services
■ Free Financial Advice
■ Comprehensive Financial Planning
Asset protection products
■ Life Insurance
■ Health Insurance
■ Disability Income Protection Insurance
■ Long-term Care Insurance
■ Auto and Home Insurance
■ Personal Liability Insurance
Emergency account options
■ Checking and Savings Accounts
■ Money Market Funds
Savings and investing products
■ IRAs
■ Annuities
■ CDs
■ Mutual Funds
■ Brokerage Services
Personal safety
■ ADT Medical Emergency Monitoring
■ ADT Security Services
■ GE Health Wellness Plan
How to contact us
Phone
The Financial Advice Center at (800)292-8972.
Online
■ Visit usaa.com.
■ Click “register with usaa.com.”
■ Follow the prompts.
.
Asset management services
■ Private Investment Management
■ Trust Services
Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by the USAA
Federal Savings Bank or USAA Savings Bank, are subject to investment risks and may lose value.
Consider the investment objectives, risks, charges and expenses of the USAA mutual funds carefully before investing. Contact us
for a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor.
Read it carefully before investing.
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the
fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The Financial Advice Center is a service of USAA Financial Planning Services Insurance Agency, Inc., a registered investment adviser and insurance
agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer.
18
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Informational resources
The USAA Educational Foundation is a nonprofit organization offering free informational resources
online at usaaedfoundation.org and in print from a library of over 30 booklets. Below is a partial list of
booklet titles. To order booklets or a full catalog of titles (#550), call (800) 477-5460. Please have your
USAA Number and the booklet number ready when you call.
No. Booklet
506 Personal Records
507 Life Insurance
509 Planning A Move
511 Managing Your Finances
518 Estate Planning
519 Selling A Home
521 Medical Records
525 Annuities
533 Renting A Home
No. Booklet
535 Driving Safely While
Aging Gracefully
537 Long-Term Care
545 Health Insurance
552 Coping With Loss
558 Homeowners Insurance
569 Funeral Planning
582 Making Medicare Choices
586 Elder Care
The Fine Print
Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by the USAA Federal Savings
Bank or USAA Savings Bank, are subject to investment risks and may lose value.
USAA Life General Agency, Inc. (known in California and New York as the USAA Health and Life General Agency) contracts with leading providers of
Disability Income Protection, Long-term Care and Survivorship Life Insurance to make those products available to USAA members. Some plans not
available in some states. ■ The Federal Long-term Care Insurance Program is administered by Long Term Care Partners LLC and is insured by John
Hancock Life Insurance Company and Metropolitan Life Insurance Company. Refer to the U.S. Office of Personnel Management web site
(www.opm.gov) for the latest updates on the federal program. ■ Medicare Supplement insurance is provided by USAA Life Insurance Company, San
Antonio, Texas. Not available in MA, NJ, NY, WI, MN. Medicare Supplement insurance is not associated with the federal Medicare program.
MoversAdvantage ® is offered through USAA Relocation Services, Inc., a subsidiary of USAA Federal Savings Bank and licensed real estate broker.
The cash back bonus is prohibited by law in some states. ■ Trust Services are offered by USAA Federal Savings Bank. This fee-based service is most
appropriate for investable assets of $500,000 or more.
USAA Brokerage Services is a division of USAA Investment Management Company.
USAA means United Services Automobile Association and its subsidiaries and affiliates. Property and casualty insurance is provided by United
Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, USAA County Mutual Insurance Company,
USAA Texas Lloyds Company and USAA, Ltd, and is available only to persons eligible for group membership. Investment products and services are
provided by USAA Investment Management Company, a registered broker dealer. Life insurance and annuity products are provided by USAA Life
Insurance Company, San Antonio, TX except in NY. In NY, life insurance and fixed annuities are provided by USAA Life Insurance Company of New
York, Highland Falls, New York. Financial planning services and financial advice are provided by USAA Financial Planning Services Insurance Agency,
Inc., a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer.
Merchandise services are provided by USAA Merchandise Services Company. Merchandise services are provided by USAA Merchandise Services
Company. Alliance services are provided through USAA Alliance Services, L.P. Banking products are provided by USAA Federal Savings Bank, an
equal housing lender, and USAA Savings Bank, both FDIC-insured.
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NOTES:
NOTES:

38772-0604 © 2004 USAA. All rights reserved.