Find Security With Estate Planning for Your Young Adult

Legal Lens: Presented by Reif & Hunsaker

Your child turns 18 and is getting ready to go to college or to move into an apartment with some friends… Congratulations! But, since your child has turned 18 — generally considered the age of majority or officially considered an adult — your rights as a parent are essentially cut off. What if they are in a car accident and cannot handle their financial affairs? What happens if they pass away? These are terrible things to consider but they happen. Just because you are a parent does NOT mean that you have any legal right to your adult child’s financial or medical decision making.

What types of estate planning and documents should your college student / your adult child have in place?

Power of Attorney

A POA will allow an “agent” to deal with your adult child’s insurance, banks, college, and other institutions if they are unable to do so. If your adult child is injured or otherwise unable to finish a college semester or apartment lease term, a parent has no inherent right to intercede with the college or landlord. If you have a power of attorney, you will have the authority to do those things.

Advance Directive

If your child is in the hospital and unable to make medical decisions, who has the right to make those medical decisions? Oregon statutes provide for a list of individuals who can make these medical decisions in the event that no Advance Directive has been signed, but what happens if there is dispute between these individuals, or your adult child wants one parent to have priority over the other parent? What happens if your adult child is in a different state? Now what?

HIPAA Authorization

In an effort to protect our medical records, HIPAA limits who can access our medical records. A young adult should carefully consider providing a HIPAA Release / Authorization to a parent or other trusted party to ensure someone has the complete picture to help make medical decisions if they cannot.

Beneficiary Designations

Your adult child will have bank accounts and maybe even retirement or investment accounts. They should carefully consider adding individuals as beneficiaries on these various accounts. If they pass away, those designations could prevent the need to probate their estate or, at a minimum, provide some immediately accessible funds to address the expenses related to the adult child’s passing.

Will

While your adult child may not own much, they will own some things. A will allows them to determine who will get their bank accounts, car, motorcycle, tools, and other items. Further, a will allows them to determine who will handle their estate — be the personal representative / executor. They can choose a parent or a sibling or a friend or a significant other. But, without a will, there will be some uncertainty as to who will fill this role. The information provided in this article does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. If you have specific legal questions, you should seek advice from an attorney.

The information provided in this article does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. If you have specific legal questions, you should seek the advice of an attorney.