Reviewing and Updating Your Estate Plan is Crucial as Your Child Turns 18 and Heads to College

We spend years preparing our children for adulthood. One significant milestone is when they turn 18 or when they head off to college. While this transition is exciting, it also brings new legal responsibilities. When your child becomes a legal adult, it's crucial to review and update your estate plan. Ensuring your now-adult child has their own estate plan is essential to authorize you (or another trusted person) to make decisions in a crisis.

The Shift in Legal Authority

At 18, your child is legally an adult. This means that without the proper legal documents, you may not have the authority to make critical decisions on their behalf. In emergencies, this can be particularly challenging. Here are key documents your child should have:

1. Durable Power of Attorney
   This document allows your child to appoint someone (typically a parent) to manage their financial affairs if they become incapacitated. It ensures that bills are paid, and financial matters are handled without delay.

2. Health Care Directive and HIPAA Authorization
   A health care directive allows your child to designate someone to make medical decisions on their behalf if they're unable to do so. Paired with a HIPAA authorization, it ensures you can access their medical information in an emergency, enabling informed decision-making.

3. Last Will
   A Will does more than just distribute assets at death. It nominates someone to represent a deceased person’s estate. This authority can be crucial in post-mortem issues like civil and criminal legal proceedings and managing intangible property like intellectual property.

4. FERPA Release
   Under the Family Educational Rights and Privacy Act (FERPA), your child's educational records are private. A FERPA release allows you to access their academic records and communicate with the college on their behalf regarding academic or financial issues.

The Importance of Updating Your Own Estate Plan

As your children transition from minors to young adults, it's also an ideal time to review and update your own estate plan. The needs and dynamics of your family have likely changed since your children were young. Here are a few key considerations:

1. Review Guardianship Provisions
   If your estate plan includes guardianship provisions for minor children, these may no longer be necessary. Instead, focus on ensuring your young adult children are properly provided for in your estate plan.

2. Adjust Beneficiary Designations
   As your children become adults, you may want to update beneficiary designations on life insurance policies, retirement accounts, and other assets to reflect their new status.

3. Consider Inheritance Trusts
   If you want to manage how and when your children receive their inheritance, consider setting up inheritance trusts. This can provide financial oversight and protection as they navigate adulthood.

4. Update Health Care Directives
   Ensure your own health care directives and powers of attorney are current and designate trusted individuals who can make decisions on your behalf.

Taking Action

As your child prepares to leave for college, it's the perfect time to review and update your estate plan. Schedule a meeting with an estate planning attorney to discuss your family's needs and ensure all necessary documents are in place. This proactive step provides peace of mind, knowing that you can support your child in any situation and that your own estate plan reflects your current wishes.

Transitioning to adulthood is a significant step for your child and your family. By updating your estate plan and ensuring your child has the necessary legal documents, you safeguard their future and ensure you can assist them when it matters most. Contact our office today to schedule a consultation and review your estate planning needs.