Kids Going Away To College?Why You Should Include Estate Planning in the Preparation
Helping your child prepare for the next phase of their life can be exciting, nerve-wracking, and a little bittersweet. Of course, there are also practical considerations. Ensure you play your role as a responsible parent by supporting them as they develop new financial habits, transition out of living at home, and plan for their future.
You're probably prouder than words can express, but you’re also a little afraid, too. How can you ensure your child is safe at school, their new home away from home? A new, matching Bed Bath and Beyond sheet set for the dorm sounds great, but it just doesn't seem like quite enough, does it? So what else can you do?
There is something, probably not yet on your to-do list, that absolutely can make all the difference. Bring your child to a local estate planning attorney.
You've probably focused on the fact that, having graduated from high school, your child is an adult now, meaning that your child is going to spread her wings. However, what is essential to remember is that at 18, a college student may still want her mom and dad by her side if she gets sick. However, legally, decisions regarding her medical care are now hers alone. If she were to be unconscious from a serious car accident, a parent may face roadblocks to access protected medical information or consent to medical treatment.
We don't want to worry you, but the unfortunate reality is that every year, a significant number of people between 18 and 25 wind up in the nation's hospitals, and their parents are sometimes locked out of critical decisions due to privacy laws.
Therefore, experts recommend that everyone over the age of 18 have a basic estate plan that includes a will or trust, a financial power of attorney, and medical directives, which would allow someone they trust to act on their behalf if they are unable to.
Here are some things to take care of before you drop your child off at college:
HIPAA Authorization: The Health Insurance Portability and Accountability Act was designed to protect a patient's privacy. Consider having your child sign an authorization so that you can talk with doctors about your child's condition, care, and treatment in an emergency.
Patient Advocate Designation: While a HIPAA Authorization can give a parent access to protected health information, it does not allow parents to make medical decisions for an adult child who is unable to communicate their medical wishes. A Patient Advocate Designation allows you to make medical decisions on behalf of your child if they are unable to do so.
Durable Financial Power of Attorney: This is a legal document that allows you to take care of your child's checking or savings accounts, pay bills, cancel subscriptions, and more if your child is unable to—whether due to illness or even just location (for example, if your child studies abroad, or if their school is on the other side of the country).
FERPA Release: The Family Educational Rights and Privacy Act is designed to protect college students’ privacy, but it can leave parents locked out when concerns arise. A properly-worded release allows school officials to talk with you and release your child's records to you.
Will: At first glance, this may seem a little silly for the average broke college kid. In our digital age, however, there are some hidden complexities. For example, on average, an email account today is tied to 130 or more online accounts, each with its own username and password. A will can include the power to manage and deal with “digital assets.”
We've been helping families attain peace of mind for years. Reach out to us today to protect your new college student and your family.
Treetown Law is here to help you every step of the way. Please contact us today to get started!
