Parents often forget this important step when preparing children for college

On Behalf of | Jan 14, 2025 | Estate Planning

Parents take steps to prepare their child for college by helping to plan everything from dorm furnishings to course schedules. Although these are an important part of the college experience, parents often forget another important, and possibly life-changing detail: an estate plan. It may seem drastic, but it is important to keep in mind that an estate plan is about more than sorting out our assets — it should also include documents that say who can control the child’s finances and health care decisions if incapacitated.

Many forget that in the eyes of the law once their child turns 18, they are adults, and parents may no longer have the right to make decisions on their behalf, especially in medical emergencies. You can take steps to help better ensure that you are there for your child if an accident or illness results in incapacitation.

What should my college-aged child include in their estate plan?

Though it might seem premature, estate planning is crucial for college students due to the legal implications that come with adulthood. Here are some essential documents every college student should have:

  • Health care directive: Allows a parent or another designated agent to make medical decisions.
  • Power of attorney: These documents allow the child to state who can have access to their financial accounts. This is important if not already listed on the accounts.

These legal tools ensure that parents can assist during a health crisis without unnecessary legal barriers.

Why is a health care directive so important?

Without a health care directive or power of attorney, parents may find themselves unable to make urgent medical decisions for their college-aged child. Once a child turns 18, parents no longer have automatic rights to make health-related decisions or access medical records due to privacy laws.

Having the proper documents in place allows parents to quickly and effectively manage their child’s health care in the event of an accident or sudden illness. It also can benefit the medical team, as navigating a situation where the legalities are not clear, and parents do not have this paperwork in order can result in ethical frustrations for the treating physicians. Parents can help remove this hurdle by talking with their child and getting this paperwork in order before they head off to college.

Estate planning is not just for the wealthy or the elderly; it is also important for college students who are embarking on their journey into adulthood. By setting up a health care directive and other necessary legal documents, parents can help to better ensure they are prepared to act in their child’s best interest during emergencies. Addressing these legal aspects before college begins can provide peace of mind to both parents and students, knowing that they are prepared for unexpected situations. Regular updates and reviews of these plans can help maintain their relevance as the student’s needs and circumstances evolve.