This time of year, parents are watching their kids graduate high school and begin their journey to adulthood, whether that means entering the workforce, going to college, or enrolling in a trade school. Turning 18, graduating high school, and moving out is a huge accomplishment that also comes with some serious responsibilities that probably aren’t at the forefront of their (or your) mind right now. Once your children become legal adults, many areas that were once under your control are now solely up to them.
Here’s the big one: Before they turned 18, you had access to their financial accounts and had the power to make all of their healthcare decisions. After they turn 18, however, you’re no longer able to do either.
That is why you should discuss and have them sign the following estate planning documents so if they become incapacitated, you can easily access their medical records and financial accounts without having to go to court. Signing these documents will ensure that if they ever do need your help and guidance, you’ll have the legal authority to easily provide it.
Medical Power of Attorney
Medical power of attorney allows your child to name an agent who has the power to make healthcare decisions for them if they’re incapacitated and cannot make such decisions for themselves. For example, this authority allows you to make medical decisions if your child is knocked unconscious in a car accident or falls into a coma due to an illness. However, unless your child is incapacitated, you do not have the authority to view their medical records, which are considered private under HIPAA.
Passed in 1996, the “Health Insurance Portability and Accountability Act,” or HIPPA, requires health care providers and insurance companies to protect the privacy of a patient’s health records. Once your child becomes 18, no one is legally authorized to access their medical records without prior written permission. Your child can choose to sign a HIPPA authorization that grants you the authority to access their medical records, though, so you can always be in the loop when it comes to your precious kid.
Different from a medical power of attorney, a living will provides specific guidelines for how your kid wants their medical care to be handled at the end of life. A living will details how they want medical decisions made for them, not just who makes them. Such power only goes into effect if the child is terminally ill, which typically means they have less than six months to live.
Your child may have certain wishes for their end-of-life care, so it’s important you discuss these decisions with them and have such provisions documented in a living will. For example, a living will allows the child to decide when and if they want life support removed if they ever require it.
Durable Power of Attorney
While medical power of attorney will authorize you to make healthcare-related decisions on their behalf, durable power of attorney will give you the authority to manage their financial and legal matters, such as paying bills, applying for Social Security benefits, and/or managing banking and other financial accounts. Without this document, you’ll have to go to court to get access.
If your child is getting ready to leave the nest to attend college or pursue some other life goal, you can trust us as your Personal Family Lawyer® to help your child articulate and legally protect their healthcare and end-of-life wishes. With us in your corner, you’ll have peace of mind that your child will be well taken care of in the event of an unforeseen accident or illness.
This article is a service of Levi Alexander, Personal Family Lawyer®. 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 $750 session at no charge.