The Essential Guide for Parents: Planning for Your College-Bound or Young Adult Child

​By Senior Associate Jeneva Vazquez

As a parent, sending your child off to college is a significant milestone filled with excitement and a bit of apprehension. With all the preparation to send your child to college, one crucial aspect that often gets overlooked is guiding your child to execute key legal documents. Once a child turns eighteen, the child is considered an adult in the eyes of the law. This means that parents are no longer given access to their child’s financial, health, and educational records without the consent of their adult child.  For this reason, it is essential for parents and young adults to discuss the importance of healthcare powers of attorney and durable powers of attorney before a child heads off to college or when your child turns 18 years old. 

We emphasize the importance of proactive planning for young adults and we can guide you through the essentials of a Young Adult Plan. 

Durable Power of Attorney: 

A Durable Power of Attorney is a legal document that allows your child to designate someone they trust—typically a parent—to make financial decisions on their behalf if they're unable to do so. The Durable Power of Attorney can be used to allow parents to pay a child’s bills, access the young adult’s personal bank account, or manage the child’s finances or legal decisions in the event of an emergency. Without a Durable Power of Attorney, you would not be able to manage your child’s financial and legal affairs during an emergency without petitioning a court to be appointed the child’s legal guardian, which can be a lengthy, costly, and invasive process.

Imagine your child is studying abroad or incapacitated due to an illness or accident. Without a Durable Power of Attorney, you might face significant hurdles in managing their financial affairs, potentially leading to unpaid bills or financial complications. By establishing a Durable Power of Attorney, you ensure that you can step in and manage things, reducing stress during challenging times.

Health Care Release of Information: Facilitating Communication

The Health Insurance Portability and Accountability Act (HIPAA) protects your child's medical information, ensuring privacy but sometimes hindering communication between healthcare providers and you. A Health Care Release of Information authorizes specific individuals to access your child's medical records and communicate with healthcare professionals on their behalf.  This is particularly important in emergencies where timely information is critical. Without this authorization, you might struggle to obtain necessary information about your child's condition or treatment options, potentially delaying crucial decisions. 

Health Care Agents: Honoring Your Child's Wishes

A Health Care Agent, designated through a Health Care Power of Attorney, is someone your child chooses to make medical decisions for them if they're unable to do so. This ensures that their healthcare preferences are honored, even if they cannot communicate for themselves.

A Health Care Power of Attorney is crucial for children who are going to college outside of North Carolina because the laws of that state will control who may be able to make medical decisions on behalf of the child if they are incapacitated. In North Carolina, the majority of the child’s parents can make healthcare decisions if the child is unable to. This means that parents will be joint decision-makers and must agree on all actions taken by doctors. However, other states may be different. There might not be a default decision maker for healthcare decisions in your child’s state.  

Taking the First Step:
 
Parents should know that the adult child must be the one to hire the attorney, and the child is free to name anyone they want to serve in these roles. The child can keep these documents on file with their university or medical provider so that it can be easily accessed if needed.   

Finally, now that your child has turned eighteen and is getting ready to enter adulthood, it may be a good time for you to review your estate plan to make sure that it still meets all of your needs and goals.  Now that they are adults, your children can serve in important roles for you.  Please call Jesson & Rains if you have questions about these documents or want to learn more about protecting you and your child’s interests through estate planning.