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

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 Living Wills Durable Powers of Attorney Trusts Business Assets Transfer Letters of Instruction 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

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: Health/Medical Insurance Policies Date Reviewed: Types of Policies: 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. 8

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. 10

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 Birth Certificates Marriage Certificate Divorce Decree Social Security Documents Keys Items: 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: Car Titles Safe-deposit Boxes Investment Accounts Companies/Account Numbers: Medications: Prescription/Non-prescription Name: Dosage: Military Benefits Documents Other Items in Safekeeping Items: Credit Cards Companies/Account Numbers: Veteran s Administration Documents Items: Claim Numbers: 12

Ask them who they rely on RECORD INFORMATION IN THE BOXES BELOW: Family Members: Physicians: Utilities: 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: 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: USAA Federal Savings Bank and USAA Investment Management Company offer a variety of options to meet your needs. Friends/Neighbors: Veterinarian: Church: 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. 14

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. 16

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

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. 20

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