Estate Planning and Practical Advice as Your Child Heads to College

High school graduations are in the rear view window, and most families are easing into summer vacation routine. For those of you whose children are leaving the nest, there are some realities of their new legal status that parents should consider.

While they may not always display the traits, these dear ones are about to slip into the legal status of adulthood with all of its ramifications. Parents will no longer have unfettered access to medical records, financial records, educational records, and it doesn’t matter who is paying the bills.

Most physicians’ offices, academic, and banking institutions will provide a way in which the child can delegate full or partial authority to one or both parents. But, a wise practice may be to establish a general and medical power of attorney, HIPAA waiver (release of confidential medical information), and even a last will in certain circumstances.

Through these documents, the young adult can appoint a parent or other trusted loved one to have a voice in that young adult’s affairs. The financial component will be particularly useful for the young adult traveling abroad for fun, for study, or for service, as it could allow the parents to handle financial matters in the young adult’s absence.

As a child grows into adulthood, there may be many potential foibles along the way. It may be worthwhile for parents to review their estate plan to ensure that they’re rewarding a maturing young adult with increased involvement or safeguarding the inheritance for their young adult with adequate safeguards. Under the law, now that they’re adult, they can inherit their share outright right away. They may not be ready for that.

Finally, there have been some extreme cases where college mischief or outright misbehavior has brought liability to the parents. Parents would be well-advised to review carefully the rules for dorm life, fraternity/sorority life, and even consult with their homeowners’ insurance agent to make sure they’re as covered as they can be.

It’s as good a time as any to review your estate plan, and it may be a good idea to get some basics in place for your children. Feel free to contact us for a consult at any time!