The thought of your 18-year-old, newly minted, high school graduate sitting down with an attorney to make an estate plan may seem a little strange. After all, they have no assets to divide and no spouse or children to provide for.
However, as a young adult heading out into an unpredictable and sometimes dangerous world, there are two vital “estate planning documents” that young adults should have in place before heading to college, or wherever life may take them.
1. Medical Power of Attorney
In the State of Indiana, eighteen is a significant age in which children become adults. That means that on their eighteenth birthday your child has control over their own medical decisions, and as their parent, you lose access to their protected medical information. As a parent sending your child off to college, a medical emergency involving your child is your worst nightmare. While unlikely, appendicitis and car accidents can happen. If an emergency arises, the best way to step-in, gather information, and help make medical decisions for your child is for them to execute a Medical Power of Attorney when they turn eighteen.
2. Financial Power of Attorney – sometimes referred to as a Durable or General Power of Attorney.
Along the same lines, having the financial assistance of a parent can be very helpful to our kids as they launch into adulthood. A Financial Power of Attorney, if execute correctly, can do just that. There are many financial decisions that are thrust upon young adults when they turn eighteen. Whether buying a car, applying for a credit card, enrolling in college, or signing a lease, there may be instances when a young adult needs their parent to communicate directly with a third party on the child’s behalf. Emergency situations can also necessitate a parent stepping in to handle a child’s financial affairs. Keep in mind that a parent must always act in the child’s best interest and should never exceed the power given in the document.
If your child desires to execute either of these documents, they need to be the one in control of the process. They will be the “client” in the attorney-client relationship, and they should make the decision as to who their “agents” in both documents will be. You should never attempt to force or coerce your child (or anyone else) into signing Powers of Attorney – it must be a decision they make on their own accord with a full understanding of the power these documents convey. If you child does decide they would like to execute Powers of Attorney, please contact our office for a consultation.