Make sure you do this if you have a “kid” heading off into the world.

Estate planning for a “kid”? Yes. As your kids get ready to leave home to pursue their educational and career goals, you need to realize that they are adults (at least in the eyes of the law).

Turning 18, graduating high school, and moving out is a huge accomplishment. It 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, you’re no longer able to do either of those things.

Before your kids head out into the world, 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 need your help and guidance, you’ll have the legal authority to easily provide it.

Medical Power of Attorney

A medical power of attorney allows your child to name an agent (like you), who has the power to make medical decisions for them if they’re incapacitated and cannot make decisions for themselves. This power of attorney allows you to make medical decisions if, for example, your child is unconscious because of a car accident or an illness.

Although that medical power of attorney would give you authority to view your child’s medical records and make treatment decisions, that authority only goes into effect if your child becomes incapacitated. This means that unless your child is incapacitated, you do not have the authority to view their medical records, which are considered private under HIPAA.

HIPPA Authorization

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 - even a parent - is legally authorized to access his or her medical records without prior written permission.

But this is easily remedied by having your child sign a HIPPA authorization that grants you the authority to access his or her medical records. This can be critical if you ever need to make informed decisions about your child’s medical care.

Living Will

While medical power of attorney allows you to make medical decisions over your child’s ongoing healthcare if they’re incapacitated, a living will provides specific guidelines for how their medical care should be handled at the end of life. 

A living will details how they want medical decisions made for them, not just who makes them. But such power only goes into effect if the child is unable to communicate and has an end stage medical condition which will result in death or is permanently unconscious and there is no realistic hope for significant recovery.

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.

Durable Power Of Attorney

​In the event your child becomes incapacitated, you’ll also need a durable power of attorney to access his or her financial accounts. If you do not have a signed, financial durable power of attorney, you’ll have to go to court to get access.

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.

Even if your child is no longer a “child”, I’m sure you still want to be able to protect and help them. It is also likely that your child still relies on you and wants your help and guidance.  Please give me a call so that I can help your family and give you the peace of mind knowing that your child will be taken care of in the event of an unforeseen accident or illness.