If your child went to college this year you likely helped them acquire apartment/dorm essentials, review their class schedule, and file all the necessary paperwork for enrollment, student loans, financial aid, and the like. Give yourself a pat on the back; as a parent you should feel great that the small human you raised is beginning to charter the course for a successful, fulfilling life!
However, there are likely two important documents you (and your college student) didn’t have on the college prep list: power of attorney for healthcare and financial power of attorney.
I encourage every Iowan to have these essential documents a part of their quality estate plan. However, college students are in a unique position since many don’t yet have the need for a full estate plan if they don’t have children, pets, substantial financial assets, real estate, at the time they head off for their undergraduate education. But, even if a college student doesn’t have a need for an entire estate plan, they still need these power of attorney documents. Let’s review both.
Power of Attorney for Health Care
A power of attorney for health care designates someone to handle your health care decisions for you if you are deemed unable to make those decisions for yourself. Your agent will be able to make decisions for you based on the information you provided in your health care POA. Equally important, your agent will be access your medical records, communicate with your health care providers, and so on.
Keep in mind that power of attorney for healthcare isn’t just about end-of-life decisions—it can cover any medical situation. So, in a worst case scenario, if your (adult) child were to have some sort of debilitating accident and were deemed by a medical professional unable to make health care decisions for themselves, then a trusted adult, like you (the parent), named as their health care representative could make such decisions in the best interest of their physical health. A similar situation could occur if your student were to have a mental health emergency. If deemed temporarily incapacitated by a doctor, health care power of attorney could allow you to commit them for the evaluation and treatment needed.
Power of Attorney for Finances
The power of attorney for finances is similar to the power of attorney for health care; your designated agent has the power to make decisions and act on your behalf when it comes to your finances. This gives the selected agent the authority to pay bills, settle debts, sell property, or anything else that needs to be done if you become incapacitated and unable to do this yourself.
While college students may not have many financial assets, their bank accounts, credit cards, and apartment leases in their name should all be taken into consideration and accounted for. Additionally, a financial power of attorney can cover digital assets including online accounts for their school, banking, email, and social media, among others. Without passing along the necessary digital information and instructions to digital accounts, parents if they’re the authorized representative, can face major headaches on issues such paying bills, accessing bank records, shutting down social media profiles, and the like she says.
Course of Action: Avoid Court
Having power of attorney documents in place also prevents someone, like you as a parent, from having to go to court to get permission to act as the student’s proxy. Avoiding court at all costs is a wise plan as it’s both time consuming and expensive.
Does State Residency Matter?
A power of attorney that’s validly executed in the state in which an individual has full-time residency is usually honored across the U.S. But, what if your child is enrolled at a school out-of-state? Not a problem. Simply have your in-state attorney contact a recommended attorney in the state where the school is located to confirm the power of attorney document would be valid in that state and if not, recommend provisions to ensure it would be.
Why Now?
When your child is a minor (under age 18) you need certain legal documents such as nomination of guardianship. Once your child turns 18 (AKA becomes a legal adult) they are no longer under your immediate care as their guardian you as their parent are no longer responsible for making their healthcare decisions. Yet, all of us need someone we trust to make decisions in our best interest, which is why adults (even college students and young professionals) need power of attorney documents established.
How to get Started? Have a conversation.
As a parent you cannot force your college student to sign a power of attorney, but you may be one of the best people to discuss the topic. While a topic that includes debilitating injuries and the prospect of death is not a pleasant one for anyone involved, it’s nonetheless important. As a trusted adult you can explain how these documents could make a vital difference in some health and financial related situations. A good place to start in the conversation is explain what the documents are and how they can be used to execute their personal wishes.
I’m always happy to help more Iowans (at any age) get the necessary estate planning documents they need. Contact me by phone or via email at gordon@gordonfischerlawfirm.com and we can get started.
