The assumption that estate plans are only for those who are older or have substantial wealth is commonly made by many parents. But, once your child turns 18, things can get complicated. When they legally become an adult, there could be unexpected complications created for your family. It’s important to have the proper estate planning documents in case of an emergency so you will be able to help your child in a time of need while they are away at school. Consider these estate planning documents before your child goes away to school in the fall.
Health-Care-Related Documents
Perhaps the most critical estate planning document for a college-age child is a health care power of attorney. Because children age 18 or older are usually treated as adults, without a health care power of attorney, you might have no say in your child’s medical treatment should they become incapacitated. This document (sometimes referred to as a “health care proxy” or “durable medical power of attorney”) allows your child to appoint someone, such as you, to make health care decisions on their behalf.
Your child’s health care power of attorney should provide guidance on how to make medical decisions. Although it’s impossible to anticipate every potential scenario, the document can provide guiding principles.
Another important health-care-related document for college students is a HIPAA release form. Federal privacy laws, including those under the Health Insurance Portability and Accountability Act (HIPAA), prevent doctors and hospitals from sharing medical information with parents once a child reaches adulthood.
If your child is injured in an accident or becomes seriously ill, you may not be able to access information about their condition or treatment options. A HIPAA authorization form signed by your child allows you to communicate with their health care providers and stay informed during a medical crisis.
Financial Power Of Attorney
Financial matters are another important consideration. College-age students typically have bank accounts and credit cards, and they may also have car loans, apartments, or part-time jobs. If an illness or accident prevents your child from handling financial responsibilities, you may not automatically have the legal authority to step in.
A financial power of attorney appoints an individual, such as you, to make financial decisions or execute transactions on your child’s behalf under certain circumstances. For example, a power of attorney might authorize you to handle your child’s affairs while they are studying abroad or, in the case of a “durable” power of attorney, incapacitated.
Will
Speaking of financial matters, it isn’t too early to have a will drawn up for your college-age child. It allows your child to specify how personal belongings, financial accounts, and digital assets should be distributed in the event of their untimely death. It also gives your child the opportunity to express personal wishes.
Without a will, state laws determine how assets are handled. This can create unnecessary complications for your family during an already difficult time.
Peace Of Mind While Away From Home
Estate planning for your adult child can help ensure you can provide support when it matters most. If you have questions about any of the documents discussed, contact our estate planning advisors.
