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Most of us don’t want to think about what will happen when our parents pass. However, as with most personal finance issues, it’s better to make plans before the situation occurs so you can prepare. For example, what if they have a mortgage loan? Who gets the home? Who is responsible for property taxes?

As an elder millennial (I don’t love the title, but apparently it’s accurate), this is starting to hit a little close to home. Our parents are aging, and we need to be prepared for what’s to come. If you will or may inherit your parents’ house, here’s what you need to know today.

1. Make sure their will is clear

What do your parents want to happen with their home when they pass? Whatever their goal is, make sure it’s in plain, clear writing. While it might seem cut and dry, there are often extenuating circumstances, and the rules can vary by state.

For instance, if they remarried later in life, their state may give a portion of their estate to their current spouse if there’s no will. If one sibling lives in the home, do your parents want the sibling to be able to stay after they pass? If one sibling was loaned money, does the balance come out of their share of the home?

Dozens of different situations could impact how the home is inherited and split; make sure your parents make their decisions clear — and put it in writing.

2. Consider having your parents set up a trust

A trust is a legal arrangement that allows parents to transfer ownership of their home to a trustee, who manages it on behalf of their children, the beneficiaries. Placing the house in a trust also lets you bypass the expensive and time-consuming probate process.

The trust can also give your parents control over who and when the house is inherited. There are two main types of trust: irrevocable, which generally can’t be changed, and revocable, which can be adjusted. Trusts can be complicated, so it’s best to work with an estate-planning attorney to work out the details.

3. Make sure you understand the mortgage situation

If the home is paid off, then you won’t need to worry about a mortgage. However, if there will still be a mortgage to pay off, you’ll need to prepare. If your parents have assets (and no trust), the mortgage payments will be pulled from the estate.

If they do not have assets other than their home, who will be responsible for paying the mortgage? Do they also have a second mortgage or a HELOC? Are there any potential liens on the home? The answers to these questions will help you decide what to do with the home, whether that’s selling, renting, or living in the house.

4. Consider what type of insurance policy you’ll need

Homeowners insurance covers a home that you both own and live in. If the house is vacant, rented, or under renovation, you may need different types of insurance, such as builders’ insurance or unoccupied home coverage. While you won’t need to take out a policy today, knowing what kind you may need can make the process smoother during an emotionally charged period.

5. Expect higher property taxes

Property taxes are generally assessed based on the home value, but many states freeze property tax increases at a certain age. For example, in Florida, many people over the age of 65 won’t see increases in property taxes for their primary residence. But when you inherit the home, the tax implications change, and you may be hit with a larger bill.

6. Make a checklist

The weeks after a loss are not the time to rely on your fantastic memory. You may be tired, sad, overwhelmed, or just numb. Trying to navigate a complex financial situation is tough at the best of times. Make a checklist of things you need to do — you can use many of the points on this list to guide your checklist. Make sure to transfer utilities into your name and review property tax implications.

Inheritance is a difficult topic for many people to talk about. Most of us don’t want to face the fact that we’ll lose our parents at some point. But talking about it now can ensure our parents’ final wishes are fulfilled and we can avoid a financial headache.

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