Are Your Kids Turning 18? Here’s Why They Need an Estate Plan Before College

As the new academic year begins, many parents are busy preparing their children for the exciting journey of college life. This transition often marks a significant milestone as teens step into adulthood at 18, gaining new independence and responsibilities. One crucial aspect frequently overlooked during this period is the importance of estate planning for these young adults.

Why Complete Estate Planning for Young Adults

Turning 18 is a significant life change. Not only do your kids become legal adults, but you also lose the right to make decisions for them. From health care to finances, they're now in charge. This might seem scary, but an estate plan can help protect them.

Loss of Parental Rights: When your child turns 18, you no longer have the legal right to make decisions for them, including medical, financial, and legal matters. While they're becoming more independent, they might not be ready for everything that comes with being an adult. An estate plan can help protect them.

Financial Independence and Protection: Many young adults earn money from jobs, scholarships, or savings. An estate plan helps them manage this money wisely and protects it if something unexpected happens. A power of attorney can help someone you trust to handle their finances if they can't.

Medical Decision-Making: Even young people can get sick or have accidents. An estate plan lets you or someone else make medical decisions for your child if they can't. A living will tells doctors what kind of care they want or don't want.

Key Components of an Estate Plan

Advance Health Care Directives: Once your child turns 18, you no longer have the legal right to make medical decisions for them. In the event of an emergency, having a healthcare proxy or medical power of attorney ensures that you can act on their behalf and make crucial medical decisions if they are unable to do so.

Durable Power of Attorney: This document allows your child to appoint someone they trust to manage their financial affairs if they become incapacitated. This includes paying bills, managing bank accounts, and handling other financial matters.

HIPAA Authorization: The Health Insurance Portability and Accountability Act (HIPAA) restricts access to an individual's medical information. A HIPAA authorization allows parents or designated individuals to access their child's medical records and communicate with healthcare providers.

FERPA Authorization: The Family Educational Rights and Privacy Act (FERPA) restricts access to an individual's educational records. A FERPA authorization allows parents or designated individuals to access their child's educational records and communicate with academic institutions.

Basic Will: While it may seem early, a will is important for everyone. It says who gets your child's things when they pass away, including their stuff and even their online stuff.

To learn more about estate planning to protect your children in the state of Georgia, click here.

Starting the Conversation

Talking about estate plans might feel uncomfortable, but it's important. Here are some tips:

• Explain it simply: Use easy-to-understand words to explain why it's important.

• Listen to them: Let your kids share their thoughts and feelings.

• Get help: Talk to a lawyer who knows about estate plans.

Conclusion

An estate plan is a gift of protection for your child. It shows you care about them and their future. Let's work together to make sure they're prepared for anything.

 At Thompson Mungo Firm, we understand the importance of preparing for the unexpected and are here to assist families in creating comprehensive estate plans tailored to their unique needs. Contact us today at 678-855-6002 to schedule a consultation and ensure your young adult is protected as they step into this new chapter of their life.

Key Takeaways

• When your child turns 18, they become a legal adult, and parents generally lose the automatic authority to make medical, financial, and legal decisions on their behalf.

• An estate plan for a young adult can include essential documents such as a durable power of attorney, advance healthcare directive, HIPAA authorization, FERPA authorization, and a basic will.

• These documents allow trusted individuals to assist with medical emergencies, financial matters, and access to important health and educational records when necessary.

• Estate planning isn't just for retirees or individuals with significant assets—it is an important legal safeguard for young adults, especially those leaving for college.

• Creating an estate plan before college can help families avoid unnecessary delays, confusion, and legal complications during an emergency.

• Reviewing and updating estate planning documents as your child reaches new life milestones helps ensure they continue to reflect their wishes and circumstances.

Frequently Asked Questions (FAQs)

Does my 18-year-old need an estate plan?

Yes. Once your child turns 18, they become a legal adult. An estate plan can help ensure that trusted individuals are authorized to make medical or financial decisions if your child becomes unable to do so.

Why should a college student have an estate plan?

College students are often living away from home and making independent decisions. An estate plan provides important legal protections in case of an accident, illness, or other unexpected event, giving parents or another trusted person the authority to assist when needed.

What estate planning documents should every young adult have?

A basic estate plan for a young adult often includes a durable power of attorney, an advance healthcare directive or medical power of attorney, a HIPAA authorization, a FERPA authorization, and a basic will. The right documents will depend on the individual's circumstances and state law.

What is a HIPAA authorization, and why is it important?

A HIPAA authorization allows healthcare providers to share medical information with individuals your child chooses, such as a parent. Without this authorization, privacy laws may prevent medical providers from discussing your child's condition with you.

What is a FERPA authorization?

A FERPA authorization allows a parent or another designated person to access certain educational records and communicate with a college or university regarding academic matters when appropriate.

Can parents automatically make medical decisions after their child turns 18?

Generally, no. Once a child reaches adulthood, parents no longer have the automatic legal authority to make healthcare decisions or access medical information unless legal documents authorize them to do so.

Does a young adult really need a will?

A basic will can help ensure that a young adult's personal belongings, financial accounts, and digital assets are distributed according to their wishes. While many young adults have modest estates, having a will can still provide clarity and simplify the process for loved ones.

When is the best time for a college student to create an estate plan?

The ideal time is before leaving for college or soon after turning 18. Having these legal documents in place before an emergency occurs helps ensure that important decisions can be made quickly and according to your child's wishes.

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