FRESHMAN ESTATE PLAN

Its August and thousands of young adults are looking forward to their freshman year of university. This is an exciting time but it also a good time to think about some basic estate planning in the event something unforeseen happens while away.

As soon as an individual turns 18 they are an adult in the eyes of the law largely limiting a parent’s ability to step in and make important decisions. Before heading off to college this year, young adult should have three basic documents; a power of attorney for healthcare, power of attorney for finances, and HIPAA authorization.

The power of attorney for healthcare appoints an individual to make health care decisions for you. You can either appoint the individual to act immediately or upon your incapacity. This document will also express your wishes regarding being kept alive by machines and organ donation.

A power of attorney for finances appoints an agent to act for you regarding financial matters. A power of attorney allows an individual to step into your shoes should you become unable to act. A power of attorney can be quite general or executed for a specific purpose, such as selling a piece of real property.

A HIPAA authorization allows individuals, like parents, to freely speak with healthcare providers.

Both the powers of attorney will allow a parent or loved one to make important decisions in the event of a young adult’s incapacity. If such planning steps are not taken then a parent will be forced to file for an adult guardianship in the probate courts. Guardianships are not ideal because they require extensive court supervision costing thousands of dollars.