It may be hard to face the fact that our children are growing up and becoming adults because, hey, we’re not getting any older, are we? (Don’t answer that.) But as time marches on, just as we need to revisit our own estate plans, we also need to help our children begin theirs. This process is often triggered when our children head off to college or move out to start their own lives. Once they become adults, we are no longer their legal decision makers. So, what steps should be taken?
School Information
If your child is heading off to college, it’s important to complete a FERPA release (Family Educational Rights Privacy Act). This release authorizes the school to share important academic information with you. And, of course, the all-important billing information.
Health Information
Whether your child is off to college or starting an independent life, a HIPAA authorization (Health Insurance Portability and Accountability Act) will allow you to review medical records and speak with healthcare providers. It also enables you to transfer medical records to a family physician or local hospital if necessary.
For more serious situations, a Health Care Power of Attorney is essential. This document authorizes a dedicated agent to make healthcare decisions for your child if they are unable to do so themselves, should they become unconscious, intubated, immobilized, or otherwise incapacitated.
In the most serious situations, a Living Will might be appropriate. This document states an individual’s preference to forgo extraordinary measures to prolong life. In Ohio, Living Wills only apply when the person is permanently unconscious in a terminal condition.
When obtaining or renewing a drivers’ license, your child can notify staff that they have executed a Health Care Power of Attorney and/or a Living Will. This can be noted on your child’s license, allowing emergency personnel to make informed triage decisions. Organ donor preference can also be noted.
Financial Information
A Durable General (Financial) Power of Attorney allows you to manage your child’s financial matters, including handling bank accounts, depositing paychecks, managing insurance, or signing contracts on their behalf.
Will
Unfortunately, consideration should also be given to creating a Will. Any property your child owns in his/her name alone, which admittedly may be very little if any, passes through probate at his/her death. Having a Will in place, likely directing assets to their parents can help streamline the process. While assets would typically pass to the parents by default, having a Will speeds up the process and simplifies the legal proceedings.
Getting Started
Helping your child establish an estate plan often begins out of necessity, such as needing access to college records or medical information. However, taking these steps now provides peace of mind and ensures that important legal and financial protections are in place. And like many tasks in life, once you start, it’s easier to keep the momentum going as life unfolds.
If you would like to schedule a consultation to discuss your child’s estate planning needs, our team is here to help.