8 Essential Documents Gen X Must Have in Order

Right now, Generation X has no shortage of responsibilities. The so-called "sandwich generation" faces the challenge of coordinating care for aging parents while helping their young adult children leave home. 

Anyone would be overwhelmed by these tasks, but there's a practical way this generation (currently aged 45–60) can ensure smooth sailing for their situation: keeping essential documents in order.

If you belong to this group, here are some crucial paperwork items to keep handy and updated to protect your wealth and minimize stress.

Establishing a trust and a will for your family can ensure a peaceful and transparent transfer of assets when the time comes.

A trust is a legal arrangement that can organize your finances, providing tax advantages and clarity for permitted financial transactions. A will, on the other hand, provides instructions on how assets should be distributed following your death. Both arrangements are beneficial in familial situations. 

Keeping these documents up to date and readily accessible can help alleviate stress about your family's future.

A power of attorney is helpful when navigating a season of aging parents.

This document can grant you (or another trusted individual) the authority to make financial or legal decisions on your parents' behalf if they require assistance. 

This authority is provided through documentation that should be kept accessible in case you need to prove that you can make decisions on your parents' behalf.

It's no secret that as we age, health issues arise. If you have parents with health complications, a health care proxy can provide peace of mind for challenging health scenarios. A health care proxy is a person who can make medical decisions on your behalf in specific scenarios.

A document called an advance directive can outline who you would like to appoint as your proxy and in which cases their authority would apply. If your relationship with your parents allows, consider being appointed as their healthcare proxy and keeping the necessary documentation to prove your appointment.

In juggling parenthood and aging parents simultaneously, certain provisions might fall through the cracks. Don't forget to include a guardianship designation within your will if you have children under 18.

This documentation outlines your wishes for your children's future guardians in the case of your passing, providing peace of mind for your children's future if something were to happen to you.

A life insurance policy can give stability in times of grief. Most of us don't love to think about a world where we're not around.

But if you have children or a spouse who relies upon your income (or your childcare), a life insurance policy can give them the gift of financial protection in a time of uncertainty. Keep your life insurance policy information readily accessible in case your family ever needs it.

Designating beneficiaries might seem like tedious housekeeping, but it's crucial to financial health. For your aging parents, reviewing their beneficiaries on retirement accounts, insurance policies, and trusts ensures that their financial affairs are in order.

For you, updating your beneficiaries can be just as important. Make sure to keep your beneficiary information current and keep accurate account information records for easy access. If you or your parents fail to designate beneficiaries, it could be a hectic process for your family to claim these accounts.

As your family decides what is best for your aging parents, it can be helpful to consider long-term care insurance. This type of insurance covers various expenses related to home care or nursing home care when your parents need it. After you apply and get approved for a policy, you'll want to keep the policy documents on hand.

When you need to file a claim, most providers require you to submit statements from the provider, the attending medical professionals, and information about the policyholder themselves.

Careful planning is key to financial health. When (or better yet, before!) your parents begin experiencing health challenges, you should take inventory of their assets and liabilities and create a viable estate plan. You'll want to hear their wishes regarding end-of-life decisions and disbursement of their holdings before any emergencies or difficult situations arise.

An estate plan can help mitigate confusion around what your parents want their twilight years to look like and their wishes for your family after they pass. This all-encompassing plan includes documents like wills, trusts, and power of attorney paperwork.

Whether you're just considering helping your aging parents get their accounts in order or you've been doing it for years, it can be a lot to handle, especially with your young adult children in tow.

But don't throw away your dreams of a stress-free retirement just yet — it could be within reach if you can stay organized and keep these critical documents in order.