Did you know that once your child becomes a legal adult, you will no longer be able to make medical or financial decisions on their behalf, even if they’re unable to do so themselves? My wife, Holly, and I were recently thinking that, now that our son is away at college, what happens if he gets sick or hurt? He’s an adult now, and with HIPAA laws being what they are, we would be limited in making medical decisions for him.
We had never thought about this – and I don’t think that we’re alone. As parents, you’ve probably already considered a lot when it comes to your own Estate Planning. Things like what happens to your estate after you pass have very likely already been decided. But it’s easy to forget to shift gears and start thinking about our children as adults (especially when they have just turned 18). And the truth is, while the perception of Estate Planning is often that it’s a near end-of-life task, the earlier you start, the better.
There are three essential documents that are an absolute must before your child sets off on their first “adult” adventure.
1. HIPAA Authorization
Having a signed HIPAA Authorization form means doctors and other medical professionals will be able to legally share potentially critical information with you about your child’s health status. This can be incredibly important should the time ever come where important decisions need to be quickly made. Once your child turns 18, your right to control things and access medical records, even if they’re still on your insurance, becomes extremely limited. You’ll no longer have authority to make medical decisions, “just because you’re the parent.”
2. Healthcare Power of Attorney (POA)
Healthcare POAs can appoint you as an agent with the authority to make medical and healthcare-related decisions for your child. With a Healthcare POA in place, you can decide on doctors and course of care, among other important things when often, time is of the essence.
3. Durable Power of Attorney (POA)
Durable POA assures you’ll be able to step in and make even non healthcare-related decisions on your child’s behalf. The most important aspect of this document is it grants you the important ability to make financial decisions and transactions, access accounts and sign documents for your child should you need.
The “Durable” part is key here, because it stays in place and means you can make decisions even after incapacitation.
Putting plans in place today means one less thing to worry about tomorrow – and if there’s one thing we can all agree on, it’s that as parents, we have enough to worry about! You can easily modify an Estate Plan at any time (and you should, too, at every major life event, like starting college, getting married or divorced, a new birth or death). Updating things like Beneficiary Designations and Advance Directives as age and status change can be simple.
Starting your child on the road to Estate Planning means having those tough conversations. You can understand their goals, their life vision, but most importantly, you’re modeling for them part of what being an adult means. You’re thinking about and making those hard life decisions that so many of us often avoid. You’re teaching them one of the last lessons you owe them: how to be a responsible adult. And that may just be the most important lesson of all.
