Yes, even college students need estate planning, as strange as that sounds. Estate planning may sound like a task for old age or only the wealthy. On the contrary, estate planning includes signing advance directives, which are documents that name people who will make legal, business, financial and medical decisions in case of incapacity, which is for young and old, rich or poor.
Estate planning also includes signing documents such as wills and trusts that name people who receive assets on death, but it is the disability planning that is the concern for young people. Parents can make decisions for their children but at age 18 children are legal adults who may make their own decisions.
If your child at age 18 or older falls ill or is injured in an accident and can no longer make decisions or communicate with medical professionals, the risk is the need for a guardianship proceeding. The parent usually hires a lawyer to file a petition with the court asking the judge to appoint the parent as the child’s legal guardian. Guardianship proceedings are costly and time consuming and can be avoided if the child had signed advance directives consisting of Power of Attorney, Health Care Proxy and Living Will.
A Power of Attorney names people who will make legal, business and financial decisions for the young adult. For example, if the child was injured and incapacitated in an accident caused by negligence leading to a lawsuit, the parent as the agent under the child’s Power of Attorney can sign the legal documents as if the child was signing them. Without the Power of Attorney, the parent would most likely have to initiate the guardianship proceeding.
A Health Care Proxy names people who will make financial decisions for the child. If the young adult is incapacitated, the parent can speak with the doctor and direct the medical care for the child. Although New York’s Family Health Care Decisions Act allows the parent or other relatives to also act on behalf of the child for medical decisions, it is recommended to sign the Health Care Proxy.
A properly drafted Health Care Proxy and Power of Attorney also includes authorization under the Federal Health Insurance Portability and Accountability Act (HIPAA) allowing the parent as agent to have access to the child’s medical records and bills.
A Living Will expresses end of life decisions regarding resuscitation and other heroic means and extraordinary measures used to sustain life.
It may seem that college students are focused on classes, grades, romance and fun, but as we well know, unforeseen illnesses and accidents can happen to anyone. Signing advance directives avoids a guardianship proceeding and allows loved ones to take over in an emergency.
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Bonnie Kraham: Even college students need estate planning
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