For starters, your child is an adult now. That means he or she is responsible for making all of the important decisions adults must make. This includes thinking about an estate plan. While you may think that estate planning is just for married people or those with families, it’s just as important when your child turns 18. Estate planning can cover simple decisions from who gets your child’s laptop and cellphone, to more important medical and financial decisions.
After reaching the age of 18, parents no longer have access to a child’s medical or financial information. This can cause problems if your child is hurt in a car accident, for example. If your child does not have an Advance Health Care Directive, no one can legally make health care decision on his or her behalf – not even parents. As parents, you will have to petition the court to become your child’s legal conservator, which is a lengthy and expensive process.
Many young adults name a parent or parents to act as their Advance Health Care Directive agent, and spell out important decisions when an emergency occurs. For example, whether a child may wish to be kept on life support should he become incapacitated as a result of an accident or illness or if he wants to be buried with a sentimental item. The chosen agent should also be given access to medical records through a document that complies with the Health Insurance Portability and Accountability Act of 1996 (known as a HIPAA Release). This release will allow the agent the ability to make medical decisions based on information in the child’s medical file, rather than having to guess about any medical conditions.
A General Durable Power of Attorney is another document that is important for young adults. This document can allow you, as parents, or any other agent your child chooses, the ability to help manage or access his financial accounts if needed. This can be helpful from a simple need for a parent to pay an online bill while he studies for finals, to needing help in resolving a case of a lost wallet while studying abroad.
One of the tricks of being an adult is the balancing act of maintaining freedom and independence, without losing sight of responsibilities. As parents, you can help your child (now a young adult) navigate the process by planning ahead and being prepared for any emergency.