Estate Planning for Students
& Young Adults

Young Adult Estate Planning for College Students

As your child prepares to head off to college, it’s crucial to understand the importance of establishing an estate plan. While many parents might not think their young adult children need such planning, the transition to college brings significant changes that make it essential. Young adult estate planning involves creating legal documents and financial plans that ensure young adults—typically aged 18 and older—have their medical and financial affairs managed according to their wishes in case of incapacity or death. Despite common misconceptions, this is a critical time for establishing an estate plan, especially as individuals transition into full legal adulthood and begin to acquire assets, responsibilities, and independence.

Key Reasons Why Estate Planning Documents
are a Must for College Students

Legal Independence

Once your child turns 18, they are legally considered an adult. This means they can make their own medical and financial decisions. However, without proper planning, you may lose the ability to make decisions on their behalf in an emergency.

Healthcare Decisions

If your child faces a medical emergency and cannot communicate their wishes, parents may not have the right to access medical information or make decisions. A Health Care Proxy designates someone—often a parent or trusted relative—who can make medical decisions for your child, ensuring that their preferences are respected.

Financial Management

College can come with financial responsibilities, from tuition payments to managing student loans and banking. A Durable Power of Attorney allows you or a trusted individual to handle your child’s financial matters if they become incapacitated, ensuring bills are paid and financial affairs are managed without the need for court intervention.

Emergency Access

Medical privacy laws, such as HIPAA, limit access to your child’s medical information once they turn 18. A HIPAA Release permits you and designated individuals to access their medical records, enabling you to stay informed about their health care and advocate for them when necessary.

Living Will

A Living Will outlines your child’s wishes regarding medical treatment in end-of-life situations. This document provides guidance to healthcare providers and family members, alleviating the burden of making difficult decisions during emotional times.

Common Misconceptions

Myth

Parents can continue to make medical decisions for their children once they turn 18.

Fact

Legally, individuals aged 18 and over are considered adults, and their medical decisions are their own.

Myth

Parents can access their young adult child’s medical information simply because they are on their insurance.

Fact

Medical privacy laws restrict access to medical records, and parental insurance status does not grant automatic access.

Myth

Parents can manage their young adult child’s finances because they are the parents.

Fact

Financial access is limited after a child turns 18 unless designated through a Power of Attorney.

Myth

Parents can continue to make medical decisions for their children once they turn 18.

Fact

Legally, individuals aged 18 and over are considered adults, and their medical decisions are their own.

Myth

Parents can access their young adult child’s medical information simply because they are on their insurance.

Fact

Medical privacy laws restrict access to medical records, and parental insurance status does not grant automatic access.

Myth

Parents can manage their young adult child’s finances because they are the parents.

Fact

Financial access is limited after a child turns 18 unless designated through a Power of Attorney.

The Risks of Not Having These Documents

Without these essential documents in place, parents may
face significant challenges in times of crisis:

Legal Barriers

If a medical emergency arises, parents may need to go to court to gain guardianship or decision-making authority, which can be time-consuming and costly.

Inability to Access Information

In the absence of a Health Care Proxy or HIPAA Release, you may be denied access to critical information about your child’s health status or treatment options.

Financial Chaos

Without a Durable Power of Attorney, managing your child’s finances during emergencies can become complicated, potentially leading to missed payments and financial stress.

Next Steps for Parents

As your child prepares for their college journey, consider
the following options for ensuring their estate
planning is addressed:

1.) Start the Conversation

Discuss the importance of estate planning with your child. Emphasize that these documents are not just for older individuals but are crucial for young adults stepping into independence.

2.) Choose the Right Documents

Work together to identify the necessary documents, including a Health Care Proxy, Durable Power of Attorney, Living Will, and HIPAA Release.

3.) Consult an Attorney

Engage with an experienced elder law attorney to guide you and your child through the estate planning process, ensuring that all documents are correctly prepared and executed.

4.) Educate and Empower

Encourage your child to take an active role in their estate planning. Understanding their rights and responsibilities will help them navigate the complexities of adulthood confidently.

Sending your child off to college is an exciting milestone, but it also necessitates a proactive approach to estate planning. By ensuring that essential documents are in place, you can protect your child’s rights, provide them with peace of mind, and safeguard your ability to support them during emergencies. Don’t overlook this critical step in their journey toward independence.

Estate Planning for Students& Young Adults

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Estate Planning for Students
& Young Adults