When we think of estate planning, most of us imagine drafting wills or setting up trusts for older adults. But estate planning is just as crucial for young adults, especially once they turn 18. At this age, they become legal adults, meaning parents lose their authority to make essential medical or financial decisions on their behalf. Without proper planning, this can leave parents feeling powerless in emergencies. Here’s what you need to know to protect your young adult’s future and stay involved in critical situations.
What Changes Legally When Your Child Turns 18?
Turning 18 is a significant milestone for teenagers, but it also brings substantial legal changes. At this age, young adults are considered legally responsible for their own affairs. This includes making medical decisions, managing finances, and accessing their own records. While this newfound independence is a big step, it can also pose risks if your child is not prepared or if you, as a parent, are not legally authorized to help when needed.
Why You Might Be Cut Off From Helping Your Child
You may not realize it, but once your child turns 18, healthcare providers, schools, and even financial institutions are no longer obligated to share information with you. This means that if your child gets into an accident and is rushed to the emergency room, you may not be able to speak to doctors or access medical records without the right legal documents in place. This can be a frightening situation, especially if you are miles away from your child, such as when they are away at college.
What Documents Should Be Part of a Young Adult’s Estate Plan?
Estate planning for young adults does not need to be complex, but a few key documents are essential to ensure you can help your child in critical situations. Let’s look at the most important ones:
- Advanced Healthcare Directive
An advanced healthcare directive allows your child to appoint someone, typically a parent, to make medical decisions on their behalf if they become incapacitated. This document covers various aspects of medical care, including decisions about life-sustaining treatment and organ donation. While it’s difficult to think about these scenarios, being prepared can save a lot of heartache and ensure your child’s wishes are honored. - Power of Attorney
A power of attorney allows your child to designate someone to handle financial matters for them. This could include managing bank accounts, paying bills, or dealing with credit card companies. For many young adults, especially those still financially supported by their parents, this document ensures that someone trusted can step in if they are unable to manage their finances. - HIPAA Authorization
Without a HIPAA authorization, healthcare providers are not allowed to share medical information due to privacy laws. A signed HIPAA authorization form gives you access to your child’s medical records and information, ensuring you can stay informed and help make decisions if needed.
Real-Life Scenario: The Risks of Not Having an Advanced Healthcare Directive
Imagine this: Your child goes off to college in another state, and you receive a frantic call from their roommate saying your child has been taken to the hospital. When you call the hospital, they tell you your child is unconscious, but due to privacy regulations, they can’t provide any details about their condition. You’re left in the dark, not knowing whether it’s a minor issue or a life-threatening situation. This is precisely what happened to one of our clients, who was unable to get any updates on her son’s condition because he did not have an advanced healthcare directive.
FAQs About Estate Planning for Young Adults
Q: My child is healthy and only 18—do they really need estate planning?
A: Yes, even healthy young adults need basic estate planning documents. Turning 18 legally changes their status, and you, as a parent, lose the ability to access their medical and financial records without the proper authorization. Preparing these documents is about ensuring you can assist them during emergencies.
Q: What’s the difference between a power of attorney and an advanced healthcare directive?
A: A power of attorney primarily handles financial matters, allowing you to manage your child’s finances, while an advanced healthcare directive is focused on medical decisions, letting you step in if your child cannot make healthcare decisions themselves. Both documents are crucial for young adults.
Q: How do I know if my child’s estate planning documents are set up correctly?
A: Estate planning documents need to be properly drafted and executed according to state laws to be legally valid. It’s best to work with an estate planning attorney who can ensure everything is in order and explain the details to you and your child.
Why Estate Planning Is an Act of Love
For parents, estate planning is not just about preparing for the inevitable—it’s about protecting your child and providing peace of mind. It ensures that if the unthinkable happens, you’ll be able to help your child without unnecessary legal obstacles. Even if your child doesn’t own property or have significant assets, estate planning documents like an advanced healthcare directive, power of attorney, and HIPAA authorization are essential for safeguarding their well-being.
How to Get Started with Estate Planning for Your Young Adult
The first step is having a conversation with your child about the importance of these documents. While it may not be an easy topic to discuss, it’s a necessary one. Explain the risks of not being prepared and how these documents will allow you to continue supporting them during their transition into adulthood.
Next, consult an estate planning attorney who understands California laws and can guide you through the process of setting up these documents. A professional can help customize the documents to fit your child’s unique situation and ensure everything is legally valid.
Don’t wait until an emergency happens—plan ahead to protect your family. At Hermance Law, we specialize in making estate planning accessible and straightforward for families. Contact us today to book a free consultation and start securing your young adult’s future. For more information on estate planning for young adults, visit Hermance Law or call 805-749-5313.
