Back to School, Back to Reality: Why Estate Planning Matters More Than Ever for Parents and their Young Adult Children 

As families shift into back-to-school mode, many parents are focused on school supplies and tuition payments for their children. But whether those children are boarding the bus or moving into their first college dorm, this season presents an often-overlooked opportunity to have a different kind of conversation between the parents and, especially, their young adult children: estate planning. 

Estate planning is not just for the wealthy or the elderly; it is one of the most important steps families can take to protect themselves, their assets, and their peace of mind, especially when their children are transitioning from minor to adult life. 

Young Adult Children and the Unexpected Loss of Parental Power 

Many parents do not realize that once a child turns 18, they are legally considered an adult. With this, parental power is suddenly gone. The legal impacts of that transition are many, but one that is commonly overlooked is that parents no longer have automatic access to their child’s medical information, which includes asking and obtaining answers from physicians and health care professionals about your child’s health status, or authority to make health care decisions on their behalf, even in case of an emergency. 

If a college-aged child ends up in the hospital after an injury or accident, parents may instinctively call the hospital for information on their child’s condition, believing they will be able to ask questions and get answers. However, without the right documents in place or express verbal consent from the adult child, under the law, hospitals and other health care facilities are legally barred from sharing that adult child’s medical information with their parents or answering any questions that would require disclosure of such information to the parents. 

In addition to this restriction on health care information, another significant legal effect parents face is the impossibility of controlling any asset or managing other general affairs that young adult children have under their name. This has a comprehensive range that many parents do not realize until it is too late, including handling and managing vehicles and bank accounts, handling possible lawsuits that may need to be filed on behalf of young adult children due to an accident that may have rendered them incapacitated, and signing and filing paperwork on behalf of those young adult children with government agencies or private companies. This includes signing and filing documents with colleges or universities and tuition or scholarship-related matters, signing and filing insurance claims, and signing and filing applications for disability or other government programs on behalf of those young adult children. 

The preemptive preparation of advance directives for those young adult children can avoid these issues, providing peace of mind while also cutting down on cost and time involved to have those powers in place after the unexpected happens. 

Essential Documents for Young Adults  

As part of your back-to-school checklist, parents should consider adding the following estate planning documents for their 18+ children: 

Durable Power of Attorney 

This document allows young adult children to appoint someone to manage their financial and legal affairs, even if they become incapacitated. It is essential to cover any potential issues involving those matters with banking, insurance, universities/colleges, and lawsuits on behalf of those young adult children if they cannot handle those themselves. 

Health Care Surrogate 

This document allows young adult children to specifically appoint someone to take care of their medical decisions in case they are unable to make those decisions themselves. 

HIPAA Release 

This document allows young adult children to provide pre-written consent to a list of people to have access to their health care information, including the ability to be entitled to have their questions answered by medical professionals regarding those young adult children’s medical records and status. Without such consent, Federal Law prohibits medical professionals from sharing any information about those young adult children’s medical records or status, including in emergency situations. 

Estate Planning to Protect Minor Children: Why Parents Should Have a Guardianship Plan in Place 

Estate planning also offers important protection for parents of minor children. Although most parents would not even want to consider the possibility of them not being around while their children are still minors, the question still lingers: who would take care of those minor children if their parents were not around? Failing to plan for such an event may lead to an undesirable decision over those minor children’s custody by the court.  

If something happens to both parents which leave their minor children without a caretaker, the court will have to appoint a temporary and/or permanent guardian for those minor children. Courts hold certain discretion to make that determination based on the best interest of the child, but will generally defer to the preference of the parents, if such preference can be formally identified. Without a formal designation from the parents, the court may make a decision that does not resonate with the parent’s wishes, family dynamics, or values. What is worse, this could result in placing those minor children in harm’s way, generating conflicts among relatives, causing delays in the determination of said guardianship, and/or leading those minor children to be temporarily placed in the care of the State while the court sorts out a final decision. 

Through active preemptive estate planning, parents can avoid this by preparing the proper legal documents, including: 

Nomination of Permanent Guardian for Minor Children  

This document allows parents to formally name the person(s) they want to have full custody and care for their minor children if they become incapacitated or pass away. It’s legally recognized and greatly influence the court’s decision in a permanent guardianship hearing. 

Best practice: Parents should name both a primary and a backup permanent guardian(s) to cover for any unexpected outcomes involving guardianship hearings. 

Nomination of Temporary Guardian for Minor Children 

This document allows parents to formally name the person (or people) they want to have temporary custody and care for their minor children while they are temporarily away (for example, while on a couple’s trip) or if they become incapacitated or pass away while the court has not made a final decision over the permanent guardianship over those minor children. It’s legally recognized and allows the temporary caretaker to temporarily handle anything that may come up regarding those minor children (for example, a child(ren)’s doctor’s practice or urgent care visits and school-related matters). 

Best practice: Parents should name as temporary guardian(s) that/those person(s) that the parents recurringly leave to care for their minor children while they are away and that could look after them while a permanent guardianship decision is pending. 

Why Estate Planning Matters for the Whole Family 

While protecting minor or adult children is a key piece of the puzzle, it is just a part of the great picture that is Estate Planning. This back-to-school time is also a great time for parents to evaluate their own estate plan — or create one if they have not already. 

Estate planning ensures that: 

• Your assets are distributed according to your wishes 

• Your family avoids unnecessary stress and court involvement 

• You remain in control of who can make health care and financial decisions if something happens to you that renders you incapable of making those decisions yourself 

Family First Firm – Your Partner in Planning Ahead and Giving you Peace of Mind 

Whether you are sending a child off to college, university or school; or simply want to be sure your estate plan is up to date, consider taking these next steps: 

Schedule a consultation with one of our estate planning attorneys at Family First Firm to assess the best estate planning for you and your family.  

Have us review and prepare your Estate Planning, including your Will, Trust, Powers of Attorney, Health Care Documents, and Preemptive Guardianship Elections for your minor children. 

Talk to your 18+ child(ren) about why these documents matter — and involve them in the process. It is a great opportunity to teach them about responsibility and the importance of preemptive planning.