Estate Planning for College Students: Why?
It is college acceptance season. Congratulations, your child is graduating soon and moving away from home, or they may already be at college or living away from home and returning for holidays! Whatever the parent/child dynamic, during these exciting times, one of the things most people don’t plan for is a crisis.
At 18, because your child is officially an adult, you can no longer (legally) step in and make decisions for them in the event of an emergency and you no longer have the right to access medical, financial or academic records. For instance, if your child is injured, ill or incapacitated, you will not be able to make any decisions on their behalf. If they incur significant debt, you will not be notified. If they are studying abroad, you cannot file tax returns, make insurance payments, or otherwise step in temporarily on their behalf.
We believe that serving as your “lifetime lawyer” extends to protecting your children at this major juncture in their lives. Our College Secure Plan is designed for everyone’s peace of mind by reducing the potential for chaos and confusion in a crisis. It is, however, not meant to strip away your child’s independence or give them an excuse to avoid their responsibilities as an adult! This plan simply means that you, as parents, retain the legal authority to make certain decisions for your child, in certain circumstances.
Under the College Secure Plan, we will prepare a Power of Attorney, an Advance Directive for Health Care, a HIPAA authorization form and a simple Will. What are these documents and why are they important?
A Power of Attorney grants a designated person the financial authority to act on your child’s behalf. Under the present scenario, this means you would have the ability to quickly access and manage your child’s financial affairs if they become unable to do so.
An Advance Directive for Health Care means that your child’s welfare is protected in case of an emergency and provides you with the authority to act on their behalf if they cannot.
A HIPAA Authorization provides you with access to their medical records. Most parents assume that because their child is still covered by their insurance that they still have access to their medical records and can make decisions on their behalf. This is not the case, and in fact, once a child turns 18, doctors cannot legally share your child’s medical information with anyone, including you.
A Simple Will ensures that their belongings, no matter how few or uncomplicated, are distributed quicker and with less hassle than dying without a Will.
One other document you may come across is the FERPA waiver. The Family Educational Rights and Privacy Act is designed to assure students’ privacy. However, the waiver allows parents and guardians to access grades and transcripts in the event of an emergency. These documents are usually provided by the educational institution but, if needed, we are happy to review them as part of the plan.
The College Secure Plan is a flat, affordable fee. It includes all four documents and the final meeting where Mark will explain the purpose of the documents and your child will sign them.
Supporting your child in this early stage of “adulting” can be daunting but we are here to provide the assistance they (and you!) need. Helping them to create an estate plan of their own can be an ideal way for them to ease into adulthood. Call us today and send them off on this next adventure prepared and protected.