Essential Estate Planning Tips for College Students
Kids Going Away To College?
Why You Should Include Estate Planning in the Preparation
For weeks now, you've been engaged in a frenzy of running, making preparations to send off your newly admitted college student. The excitement coursing through your veins is nothing short of electrifying, and your heart feels as though it's on the verge of bursting with joy. Words cannot fully capture the depth of pride you feel in this moment, yet there is also a lingering sense of fear whispering within you. You probably have not even thought about essential estate planning tips for college students. Here’s why you should.
Why Add Estate Planning to your To Do List?
Actually, there is something, probably not yet on your to-do list, that absolutely can make all the difference. Bring your child to a local estate planning attorney.
You've probably focused on the fact that, having graduated from high school, your child is an adult now—meaning that your child is going to spread her wings. But what is essential to remember: At 18, a college student may still want her mom and dad by her side if she gets sick. However, legally, decisions for medical care are hers alone now. If she were to be unconscious from a serious car accident, a parent couldn't authorize medical care without first going to court. And it would be up to a judge to determine if her parent would be an appropriate guardian to make medical decisions.
We don't want to worry you, but the unfortunate reality is that every year, a significant number of people between 18 and 25 wind up in the nation's hospitals, and their parents are often locked out of critical decisions.
Therefore, experts recommend that everyone over the age of 18 have a basic estate plan that includes a will or trust, a financial power of attorney, and medical directives that would allow someone they trust to act on their behalf if they aren't able to.
Estate Planning To Do List
Here are some things to take care of before you drop your child off at college:
A FERPA Release: The Family Educational Rights and Privacy Act is designed to protect college students’ privacy, but it can leave parents locked out in an emergency. A properly worded release allows school officials to talk with you and release your child's records to you.
A HIPAA Authorization: The Health Insurance Portability and Accountability Act was designed to protect a patient's privacy. Consider having your child sign an authorization so that—just in case—any necessary doctors can talk to you about your child's condition, care, and treatment.
A Durable Financial Power of Attorney: This is a legal document that allows you to take care of your child's checking or savings accounts, pay bills, etc., if your child is unable to—whether due to illness or even just location (for example, if the school is on the other side of the country).
A Durable Power of Attorney for Healthcare: Like the financial version, this allows you to handle medical decisions for your child if your child is unable to do so.
A Will: At first glance, this may seem a little silly for the average broke college kid. In our digital age, there are some hidden complexities. For example, on average, an email account today is tied to 130 or more online accounts, each with their own username and password. Does your child have thoughts about who should manage their social media and email accounts, receive valuable gaming accounts, and close down other apps and accounts? It’s also a great time in your young adult child’s life to instill responsibility by encouraging them to think about planning in the long term.
Contact Us
We've been helping families attain peace of mind for years. Reach out to us today to protect your new college student and your family.
