Reminder: An 18 year old needs estate planning too
This year Luke graduated high school and will be off to college this fall. We took care of his estate planning needs shortly after he turned eighteen. As more and more clients have kids turning 18, I encourage them to consider estate planning. As weird as that may seem, when your child turns 18 they are legally an adult. This is not a matter of debate about whether they are an adult in maturity or brain development, it is true as a matter of law. At 18 they have all the rights that adults have, the right to contract, the right to privacy, etc. That means, you don’t have the “right” or ability to be in their business unless they allow you to.
Once they’re 18, parents can’t call their doctor and get information about their healthcare, nor can you make healthcare decisions for them. As you know, medical providers are bound by federal HIPAA laws that come with steep penalties if violated. So, if your child is off at college and is sick and hospitalized then without a signed HIPAA waiver, you can’t get information about your child.
What if you need to talk to the accounting office at the college? They may refuse to speak with you about your child’s tuition.
As far as college/university goes, they likely have a form associated with the Family Educational Rights and Privacy Act (FERPA) which allows your child to give permission for the school to speak to you. This would be similar to the HIPAA waiver you use at the doctor’s office.
What type of estate planning would most 18-year-old’s need?
A beneficiary designation on any bank accounts- if something happens, God forbid, this asset will avoid probate and be paid directly to your child’s chosen beneficiaries.
General Durable Power of Attorney- If your child becomes incapacitated their chosen person could make legal and financial decisions for them.
Durable Power of Attorney for Healthcare-This allows your child’s chosen person to make healthcare decisions for them in the event they are unable to make decisions for themselves.
HIPAA Waiver- This would allow your child’s chosen people to have access to their medical information from any medical provider.
Having these things provides the peace of mind parents and young adults need before they launch. Not all children turning 18 are going off to college, some of them still have high school to finish out. Whether they are still in high school or not, you’ll need these documents taken care of. We can help explain everything to your newest adult while providing the comfort and guidance needed.
