Tax season is here and many adult children are asking themselves if their parents have all the documents at hand to prepare their taxes. If they live in a care facility, we recommend talking with a tax expert as sometimes some or even all of the cost of assisted living can be claimed as a medical deduction. Below is a checklist of paperwork needed for taxes in addition to other important information someone else might need to have access to in order to help manage a loved one’s affairs.
- Complete list of your parent’s assets, including their savings, checking, money market accounts, stocks, bonds, pension plans and retirement accounts.
- Copies of state and federal returns from the past five years.
- List of loans and debts, including credit cards and medical bills.
- Insurance policies including life, health, disability, mortgage, homeowner’s, accident, auto insurance and contact information for their agent.
- Names, addresses and phone numbers of doctors, dentists, pharmacists, lawyer, tax advisor and accountant will be helpful.
- Copies of Will, Healthcare Directive and Advance Directives.
- Titles to motor vehicles.
- Deeds to property
- Safety deposit box location and keys.
- Utility bills account numbers
Having a hard time getting your parents to share? Offer to help find the information. Perhaps you provide a checklist for them. It’s reassuring to know that your kids or spouse won’t be burdened by having to look for documents.