Estate Planning for Young Adults – Keeping Parents in the Loop
Very often, we are working with clients whose children have just reached adulthood. Whether your child has just hit eighteen years old or their into their college years, it’s common that a child that is a new adult is still reliant on their parents for help in all sorts of ways. While a young adult may not have the most urgent need for a Will or Trust, this blog will go into the three documents that are absolutely crucial to have in place if a college aged person wants their parents involved in decision-making during a catastrophe.
Power of Attorney:
The Power of Attorney is a document that designates an Agent, or Attorney-in-Fact, who will look out for the drafter’s financial best interests in the event that the drafter cannot make decisions for themselves or is deemed to be incompetent by a physician or court. There can be other structures for a Power of Attorney, but for a college-aged child, in the eyes of the law, they are old enough to be responsible for themselves financially. Whether or not an 18- or 19-year-old is old enough to enter into leases, contracts, and engage with financial institutions in their parents’ eyes, they have the capacity to do so from a court’s perspective.
The Power of Attorney, when effectively drafted and executed, appoints a trusted person who will step in if the college-aged child is unable, or even unwilling, to make decisions for themselves. The document does not always need to be drafted to be effective only in the event of incapacity. There are other forms it can take that may fit your family’s situation.
Advance Medical Directive:
The Advance Medical Directive (often called a “Living Will”) is the other side of the coin from the Power of Attorney. It appoints an agent who will make medical decisions for you in the event that you cannot make them for yourself. Unlike the Power of Attorney, incapacity is required in all scenarios for an Advance Medical Directive to become effective. Making sure this document is in place with the right agents appointed will ensure that if a disaster takes place, someone close to you who understands your personal life values and viewpoint will be making your medical decisions in line with those values and viewpoint.
HIPAA Waiver:
HIPAA, or the Health Insurance Portability and Accountability Act of 1996, is a federal law that provides protections for sensitive health information. HIPAA in practice ensures that medical information is kept confidential, with very few exceptions. For a college-aged person, HIPAA is incredibly relevant. If there is an accident and a parent wants to ask questions to a medical professional, an insurance company, or even the college’s administrative or medical staff, HIPAA may prevent that entity from discussing or disclosing anything to the parent. Being in the dark when something is wrong is devastating for parents, and the HIPAA Waiver is the key to waiving medical confidentiality for those listed on the document.
Why Would I Need This for my College-Aged Child?
This is the big question. As all parents like to think, we know what’s best for our children. Letting go and sending our beloved children to school is hard enough. Thinking about something going wrong makes it even more unpleasant. However, getting the documents together can be incredibly important in a health emergency. If a college-aged individual is injured, hospitalized, or becomes incapacitated for any medical reason, that child’s parent MAY be contacted. Because they are deemed to be adults, there are horror stories easily found online showing that parents were completely excluded from medical decisions and updates when their child was injured.
Ensuring that your child has a Power of Attorney, Advance Medical Directive, and HIPAA Waiver in place, and on file with the university, is one of the best ways you can make certain that you will be involved if something happens to your child. Also, communicating with your child about how important these documents are is a necessity. The documents are only as effective as the person presenting them to the medical facility. After they are drafted, you may want to give your child’s roommates copies so they can advocate for your child in the event of an accident.
While it may seem strange to engage in estate planning for your young and healthy college-aged children, hopefully this article sheds some light on the justification and rationale for targeted planning to make sure the right people are stepping up to make the best decisions in the event of an emergency or disaster. Give us a call at Wakefield Law to see if these documents are right for you! 703-771-9740.