With the arrival of summer, young people across the country have reached a key milestone: high school graduation. If you have a child claiming their diploma, now is the time to prepare them for life after leaving the nest.
Graduating high school is a significant accomplishment. However, it comes with serious responsibilities that your child probably isn't thinking much about right now. Once your child turns 18, they become a legal adult, and specific areas of their lives that were once under your control will be solely their responsibility.
While your child will now be a legal adult, you still have essential parental duties. Yet, if you don't support your child to step into adulthood with legal documents to help both of you, it can be challenging and costly for you to help them in the event of an emergency.
For instance, should your child get into a severe car accident and require hospitalization, you would no longer have the automatic authority to make decisions about his or her medical treatment or handle their financial matters. In fact, without legal documentation, you wouldn't even be able to access his or her medical records or bank accounts without a court order.
To address this vulnerability and ensure your family never gets stuck in an unnecessary court process, before your kids move out or head off to college, have a conversation about estate planning and have them sign the following three documents.
1. Healthcare Directive
The first document your child needs is an advance healthcare directive that allows your child to grant you (or someone else) the immediate legal authority to make healthcare decisions on their behalf if they become incapacitated and are unable to make decisions for themselves.
For example, the healthcare directive would allow you to decide about your child's medical treatment if he or she is knocked unconscious in a car accident or falls into a coma due to a debilitating illness. Without a healthcare directive in place, if your child suffers a severe accident or illness that requires hospitalization and you need access to their medical records to make decisions about their treatment, you'd have to petition the court to become their legal guardian. While a parent is typically the court's first choice for a guardian, the guardianship process can be slow and expensive.
The healthcare directive can include specifications on how your child's medical decisions should be made, particularly at the end of life. For example, it allows your child to advise if and when they want life support removed should they ever require it. In addition to documenting how your child requests their medical care managed, it may also include instructions about who should visit them in the hospital and even what kind of food they would want to have provided. For example, if your child is a vegan, vegetarian, gluten-free, or takes specific supplements.
2. HIPAA Authorization
Due to HIPAA laws related to medical privacy, once your child becomes 18, no one—not even parents—is legally authorized to access his or her medical records without prior written permission. A HIPAA authorization will allow you (or whoever your child chooses
) to immediately access their medical records to make informed decisions about their treatment.
3. Durable Financial Power of Attorney
Should your child become incapacitated, you may also need the ability to access and manage their finances, and this requires your child to grant you durable financial power of attorney.
A durable financial power of attorney gives you the authority to manage their financial and legal matters, such as paying their tuition, applying for student loans, paying their rent, negotiating (or re-negotiating) a lease, managing their bank accounts, and collecting government benefits if necessary. Without this document, you'll have to petition the court for such authority.
Start Adulthood The Right Way
Before your kids head out into the world, make sure they've got the proper planning in place. By doing so, you are modeling good financial stewardship and setting them up right from the start. Financial and legal illiteracy is an epidemic that you can quickly address, starting with yourself and your own family. As your Personal Family Lawyer®, we can not only help you create these vital documents, but we can also facilitate a family meeting to discuss the importance of planning. We will begin what we hope will be a life-long relationship with your children as they take this crucial first step into adulthood. Contact us today to ensure that if your child ever does need your help, you’ll have the legal authority to provide it.
This article is a service of Oakden Law, Ltd., Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.