Dear Hayek,
Our son is heading to college for his sophomore year in a couple of weeks. Last year, I was worried about him adjusting socially and doing well academically. Now that I know he is happy there, has a nice group of friends, and has been on the Dean’s List for both semesters of his freshman year, I have other concerns. I have been pondering something that a friend and I discussed — the importance of getting a college student’s estate planning in order. He specifically mentioned a Financial Power of Attorney and Advance Medical Directive for his son. I have these documents for my elderly parents, but why would a college student need to have these documents in place?
Thanks for your help!
Stew Dent
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Dear Stew,
Your friend is absolutely correct. You, like most people, don’t ever think about incapacity planning for a young adult heading off to college, but you should. As your friend mentioned, a Financial Power of Attorney and an Advance Medical Directive (which should include a Medical Power of Attorney) should always be put in place for adult children before they head off to college. In fact, every adult over the age of 18 should have these vital documents.
Here’s why these documents are so important, even for young adults:
- Legal Adult Status: Upon turning 18, your child is considered a legal adult, which means that you, as a parent, no longer have any authority to make legal or financial decisions on behalf of your child, even in emergencies. What if an accident happens while your adult child is away at school, resulting in your child becoming incapacitated, either temporarily or permanently? No one likes to think about these things, but we all know they happen. In fact, they often make the evening news. Young adults, whose brains are not fully developed until around age 25, sometimes do stupid things (or hang around other young adults doing stupid things). Some of the most common accidents that easily come to mind are motor vehicle collisions, head injuries while engaged in sports or other risky activities, and recreational drug or alcohol overdose.
- The National Survey of Children’s Health identified 1 in 4 children ages 12 to 17 as having special health care needs in 2019, and the American Community Survey estimates that more than 1.3 million U.S. young people ages 16 to 20 have a disability.
- Without a Financial Power of Attorney, if your child becomes temporarily or permanently incapacitated, you won’t be able to access your child’s school records, financial records, social media accounts, or make any legal or financial decisions for your child. No one ever has the automatic legal right to make legal and financial decisions for another person. This is very different from medical decisions.
- Without an Advance Medical Directive, you may also encounter difficult challenges when attempting to make medical decisions or access your child’s medical records during a time of incapacity. You as a parent are typically the closest relative to your child, and as the next of kin, you will usually have the automatic legal right to make emergency medical decisions for your child. But if you and your spouse are separated or not married, or just disagree on a course of treatment (or non-treatment) for your child, you will likely be forced to go to court to let a judge decide which parent gets to make medical decisions concerning your child, and a judge may wind up appointing a neutral third-party to make these decisions.
- Having your child sign an Advance Medical Directive along with a General Power of Attorney is the basis for what is known as “incapacity planning” which, as mentioned above, is crucial for all adults of any age. These two documents are also part of estate planning, which includes a will or a trust to transfer assets upon death, but estate planning is typically not necessary for a young adult in college as they typically don’t own any assets of significance.
Gain Peace of Mind by Having Your Adult Child do Incapacity Planning
A Financial Power of Attorney and Advance Medical Directive are the most important legal documents your student can have, because they enable your child to appoint you to act for them if they become temporarily or permanently incapacitated.
Having these documents in place also encourages your young adult to think responsibly about their future and the potential challenges they may face. Discussing these issues and planning ahead fosters a proactive approach to being responsible and independent. By discussing and having your child sign these documents, you can help safeguard your child’s future well-being and ensure your child has the necessary legal documents in place in case of emergency.
Hope this helps!
Hayek
