Why Powers of Attorney Should Be on the College Prep Checklist
Whether your child is still finishing high school, heading to college, taking a gap year, joining the military, or entering the workforce, turning 18 generally means becoming a legal adult. There's certainly plenty to think about: dorm essentials, class schedules, tuition, transportation, jobs, travel, and the excitement of becoming more independent. One important item, however, is easy to overlook: legal planning for your newly minted adult.
When your child turns 18, you are no longer legally authorized to automatically make medical or financial decisions for them simply because you are their parent. A few basic estate planning documents can help your child maintain control over their affairs while also making it easier for you to step in and help if they need you.
“By failing to prepare, you are preparing to fail.” — Benjamin Franklin
The good news? This planning is usually straightforward, and it can provide significant peace of mind for both parents and young adults.
Turning 18 Means Becoming a Legal Adult
That means your child—not you—has the legal authority to make their own medical decisions and handle their own financial and legal affairs. That independence is a good thing. But it can also create practical problems if an emergency occurs.
What happens if your 18-year-old is seriously injured and cannot communicate with doctors? Or if they are in another state/country and need help dealing with a bank, financial account, or other financial matter? Without appropriate legal documents, you may have limited ability to step in and help.
Health Care Power of Attorney Can Help in a Medical Emergency
A health care power of attorney allows your adult child to designate someone—often a parent—to make health care decisions on their behalf if they are unable to make or communicate those decisions themselves.
This is different from simply being listed as an emergency contact. An emergency contact does not automatically have the legal authority to make health care decisions. A properly executed health care power of attorney can give your child the ability to choose who will have that authority.
HIPAA Authorization Allows Access to Information
HIPAA generally protects an adult's medical information from disclosure without appropriate authorization. Your child may want to authorize parents or other trusted individuals to receive medical information and communicate with health care providers.
A HIPAA authorization and a health care power of attorney are not the same document and serve different purposes. A HIPAA authorization generally addresses access to protected health information; a health care power of attorney addresses who may make health care decisions when the principal cannot do so.
Financial Power of Attorney
A financial power of attorney allows your child to authorize someone they trust to handle financial and legal matters on their behalf. This can be useful if your child is away at school and needs help with matters such as banking, financial accounts, or other transactions they cannot conveniently handle themselves.
For many young adults, the financial power of attorney can be drafted with the child's specific circumstances in mind rather than giving another person unlimited authority over everything they own.
Waiting Can Create Problems
It is easy to think, “We'll take care of that later.”
But an accident or medical emergency does not wait until the paperwork is convenient.
If your child becomes incapacitated without the appropriate documents in place, you may have to navigate additional legal or institutional procedures before you can obtain information or assist with certain matters. In some circumstances, court involvement may even become necessary.
Preparing these documents before your child leaves home is much easier than trying to address them during an emergency.
Empowering Your Child—Not Taking Away Their Independence
For some young adults, the idea of giving a parent legal authority can feel uncomfortable. These documents do not mean that a parent automatically takes control of an adult child's life.
Instead, they allow the young adult to choose who can help them, what authority that person has, and under what circumstances that authority can be used. The planning is ultimately about giving your child more control—not less.
Simple College-Age Estate Planning Checklist
Before your child leaves for college, consider discussing whether they should have:
Health Care Power of Attorney — designates someone to make health care decisions if your child cannot.
HIPAA Authorization — authorizes designated people to receive protected health information.
Financial Power of Attorney — allows someone your child trusts to assist with financial and legal matters.
Living Will or other advance directive, when appropriate — communicates your child's wishes regarding certain end-of-life medical treatment.
Give Your Child the Gift of Preparedness
Having a child turn 18 is a major milestone. Along with packing the extra-long sheets and making sure they know how to do laundry, take a little time to help them prepare for the legal responsibilities that come with adulthood. A few thoughtfully prepared documents can make an enormous difference if your child ever faces a medical emergency or needs help managing an important financial or legal matter.
More importantly, the process gives you an opportunity to have an important conversation with your child about their wishes, their independence, and the people they trust to help them if something unexpected happens.
Planning for the possibility of an emergency doesn't mean expecting something to go wrong. It means being prepared if it does.
If your child is leaving home or has recently turned 18, I invite you to contact me to discuss whether a health care power of attorney, HIPAA authorization, financial power of attorney, or other planning documents make sense for your family.
If you found this blog post helpful, please consider liking and sharing it with others who may benefit from this information. If you have questions about your estate planning needs or would like to discuss your individual situation, I invite you to contact me to schedule a consultation. I look forward to helping you protect your legacy and plan for the future.
The information contained in this article is for informational purposes only and should not be construed as legal advice on any matter, nor relied upon as legal advice. The transmission and receipt of information contained on this website, in whole or in part, does not constitute or create an attorney-client relationship. The material on this website and this article is accurate to the best of our knowledge as of the date of posting, however rules, regulations, and limits can change often and these materials may not reflect the most current legal developments and updates may not be reflected herein. Modern Legacy LLC disclaims all liability in regard to actions taken or not taken based on any or all of the contents on this site to the fullest extent permitted by law. Do not take action or refrain from taking action without seeking professional legal counsel.
