Many people associate estate planning as a task to be completed when one is wealthy, old, or both. In reality, estate planning should be done for everyone at the onset of adulthood – which is age 18. This will ensure that a person is protected (and wishes met) regarding possible healthcare and financial needs. In this regard, before your 18-year-old leaves for college, it’s wise to take care of some essential estate planning tasks to ensure their legal and financial affairs are in order. Here are some of the key documents and steps to consider:
Durable Power of Attorney:
This document allows you to make financial and legal decisions on your child’s behalf if they become incapacitated.
Medical Power of Attorney (Healthcare Proxy):
This grants you, the parent or other trusted party, the authority to make medical decisions for your child if they are unable to do so themselves.
HIPAA Authorization:
This document permits healthcare providers to share your child’s medical information with you. Without it, you might not be able to access their medical records due to privacy laws. Doctors may not refer to you for imminent healthcare needs of your child.
Living Will:
This outlines your child’s wishes regarding end-of-life care and medical treatment in specific situations.
Will:
While young adults might not have significant assets, it’s still useful to have a will in place to address the distribution of any personal belongings and assets.
Digital Assets:
Make a plan for managing digital assets, such as social media accounts, email, and online banking. Your child can designate someone to handle these accounts if they become incapacitated.
The day your child leaves for college can be emotional enough. The planning, the shopping, the packing which precedes this day – it can be overwhelming. Estate planning is just another step to helping your child (and your family) be prepared for the road ahead. Consulting with an estate planning attorney can help ensure all documents are correctly prepared, executed, and tailored to your specific needs and state laws.
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