Adulting 101

In today’s rapidly changing world, young adults often find themselves navigating a multitude of responsibilities and decisions as they embark on their journeys toward independence. While estate planning might seem like a topic more relevant to older generations, it holds a crucial significance for young adults as well. The truth is unforeseen circumstances can affect anyone at any stage of life, underscoring the importance of having essential estate planning documents in place. These documents provide a sense of security and control over one’s future and offer a practical way to ensure that one’s wishes are honored in situations that may involve medical emergencies, financial uncertainties, or unexpected life events. As such, young adults (and their parents) increasingly recognize the value of establishing these foundational legal instruments early on to safeguard their well-being and protect their assets.

What legal documents do your young adults need when they turn 18?

It’s great that you’re considering legal documents for a young adult at 18. At this point, individuals become legal adults and have certain rights and responsibilities. Some essential legal documents for a young adult to consider include:

1. Healthcare Power of Attorney: This document designates someone to make medical decisions on their behalf if they are unable to do so themselves.

2. Durable Power of Attorney: This grants someone the authority to manage their financial affairs if they become incapacitated.

3. Living Will: Also known as an advance directive, a living will outlines their preferences for medical treatment and end-of-life care.

4. Last Will and Testament: While typically associated with older adults, it’s never too early to create a will to outline how they want their assets distributed in case of their passing.

5. HIPAA Authorization: This allows healthcare providers to share medical information with designated individuals.

6. Digital Assets: As technology becomes more integral to our lives, it’s important to consider what should happen to their online accounts and digital property after their passing.

Some additional legal documents to consider include:

7. Rental Agreement: If they’re moving out of their parent’s home or living independently, a rental agreement can help outline their responsibilities as a tenant.

8. Bank Account Documents: If they’re opening a bank account, they will likely need identification documents and possibly a parent or guardian’s signature if they’re under 18.

10. Student Loan Agreements: If they’re pursuing higher education and taking out loans, they should be aware of the terms and conditions of their loans.

Remember, legal requirements can vary from state to state, which is why it’s a good idea to consult with an attorney when your young adult is ready to set up their first estate plan.

Why do parents want to have their 18-year-old child’s legal documents in order?

Parents often want to ensure that their 18-year-old child has their legal documents in order for several important reasons:

1. Healthcare Decisions: Legal documents like a Healthcare Power of Attorney and a Living Will can allow parents to make medical decisions on their child’s behalf if they cannot do so themselves. This becomes crucial in case of accidents, emergencies, or medical situations where the young adult cannot communicate their wishes.

2. Financial Management: With a Durable Power of Attorney, parents can manage their child’s financial affairs if the child becomes incapacitated. This can be especially helpful when the young adult is away at college or living independently and needs assistance with financial matters.

3. Peace of Mind: Parents naturally worry about their children’s well-being. Knowing that their child has taken steps to address important legal matters can provide parents with peace of mind, knowing that their child’s interests are protected even if they are not directly involved in every decision.

4. Asset Distribution: While it might not be pleasant to think about, having a Last Will and Testament ensures that the young adult’s assets are distributed according to their wishes in case of their passing. This can help prevent confusion, disputes, and potential legal issues among family members.

5. Privacy and Communication: Documents like HIPAA Authorization allow parents to access their child’s medical information and communicate with healthcare providers if necessary. This can be critical in situations where quick decisions need to be made about medical treatment.

6. Transition to Independence: As young adults transition to independence, having these legal documents in place empowers them to take control of their own lives while still having a safety net in case of unexpected events.

7. Avoiding Legal Complications: Without proper legal documentation, parents might face challenges in accessing their child’s medical or financial information, making decisions on their behalf, or managing their affairs if needed. These challenges can be avoided with the appropriate legal documents in place.

8. Educational and Employment Needs: Some legal documents, such as what is needed when signing rental agreements or managing student loans, might be necessary as young adults pursue higher education or enter the workforce.

By helping your young adult put their first estate plan in order, you, as a parent, demonstrate your support, care, and commitment to your child’s well-being and future. It teaches your young adult responsibility and becomes a great lesson that will benefit your child as they move through life. If you have any further questions about what legal documents your young adult might need, or you are ready to make some moves and start to get these in order, contact Cris Carter Law today.

Once Your Kids Are 18, Make Sure They Sign These Documents

When your child hits their teenage years, you know they are in for a very emotional, difficult period of growth as they learn to navigate the world as a budding young adult. While estate planning is probably one of the last things your teenage kids are thinking about, when they turn 18, it should be their (and your) number-one priority – especially in light of the risk COVID-19 represents. Here’s why: at 18, they become legal adults in the eyes of the law, so you no longer have the authority to make decisions regarding their healthcare, nor will you have access to their financial accounts if something happens to them. Suddenly, all the problems a teen faces are very small in comparison to the ones they face as a young adult.

With you no longer in charge, your now-young adult would be extremely vulnerable if they became incapacitated by COVID-19 or another malady and lost their ability to make decisions about their own medical care. Since we know that putting a plan in place could literally save their lives, if your kids are already 18 or about to hit that milestone, it’s crucial that you all sit down and discuss what kind of documents they will need. 

Medical Power of Attorney

medical power of attorney is an advance directive that allows your child to grant you (or someone else) the legal authority to make healthcare decisions on their behalf in the event they become incapacitated and are unable to make decisions for themselves. 

For example, a medical power of attorney would allow you to make decisions about your child’s medical treatment if he or she is in a car accident, or is hospitalized with COVID-19.  

Without a medical power of attorney in place, if your child has a serious illness or injury 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 guardian, the guardianship process can be both slow and expensive

And due to HIPAA laws, once your child becomes 18, no one—not even parents—is legally authorized to access his or her medical records without prior written permission. But a properly drafted medical power of attorney will include a signed HIPAA authorization, so you can immediately access their medical records to make informed decisions about their healthcare.   

Living Will or Advanced Health Care Directives

While a medical power of attorney allows you to make healthcare decisions on your child’s behalf during their incapacity, a living will is an advance directive that provides specific guidance about how your child’s medical decisions should be made, particularly at the end of life. 

For example, your child’s living will would detail whether they want life support removed, should they ever require it. In addition to documenting how your child wants their medical care managed, a living will can also include instructions about who should be able to visit them in the hospital and even what kind of food they should be fed.  

This is especially vital if your child has specific dietary preferences. For example, if he or she is a vegan, vegetarian, gluten-free, or takes specific supplements, these things should be noted in their living will. It’s also important if you don’t know all of their friends or who they would want to be part of their medical decision-making if they are unable to make decisions for themselves.

Additionally, remember to speak with your child about the unique medical scenarios related to COVID-19, particularly in regards to intubation, ventilators, and experimental medications. How such treatment options can be addressed in a living will can be found in our previous post: COVID-19 Highlights Critical Need for Advance Healthcare Directives. 

Durable Financial Power of Attorney 

Should your child become incapacitated, you may also need access and be able to manage their finances. This requires your child to grant you durable financial power of attorney

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, managing their bank accounts, and collecting government benefits. Without this document, you’ll have to petition the court for such authority. 

Peace of Mind 

As parents, it’s normal to experience anxiety as your child grows up and becomes an adult, and with the pandemic still raging, these fears have undoubtedly intensified. While you can’t totally prevent your child from an unforeseen illness or injury, with us, you can at least rest assured that if your child ever does need your help, you’ll have the legal authority to provide it. Contact us today to get started.  

___________

This article is a service of Cris Carter Law. We don’t 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 Family Wealth 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 Family Wealth Planning Session and mention this article to find out how to get this $500 to $750 session at no charge.