Estate Planning for Graduates
I hear you. “Why on earth would my 18 year old need a will or a trust? This seems like overkill!”
You are correct. Your 18 year old does not need a will or a trust (in the absence of unusual circumstances). However, it would be wise for your graduate to consider getting a Health Care Directive or a Power of Attorney.
A Health Care Directive gives another person the ability to make medical decisions on your behalf if you are unable to make those decisions yourself. Many parents (and kids!) assume that, if their college student is hospitalized, the parent would automatically be able to make medical decisions on their behalf. However, that is usually not the case. In many states—including Minnesota—if you are over 18 years old and you have not designated a Health Care Agent, then there is no “default” for who can make decisions for you. What happens instead depends entirely on state law (the laws of the state in which said adult child may be hospitalized).
There is an easy fix: get a Health Care Directive, and name an agent. These are recognized across state lines and can provide enormous peace of mind for parents. Just ask my mom: she had me sign one on my 18th birthday.
On a related note, Powers of Attorney can be extremely valuable to 18 year olds. A Power of Attorney gives another person the ability to make financial decisions on your behalf.
For example: if your adult child loses their wallet, and needs help managing the fallout—a Power of Attorney can step in and assist with that loss. If your adult child is studying abroad or is deployed abroad, you can help with financial matters at home and in a different time zone. A Power of Attorney for a young adult can permit a more seasoned adult to assist with a variety of financial matters and emergencies.
If you are interested in learning more, please reach out. At the Courtney Law Office, we often help recent high school graduates get their Health Care Directive and Power of Attorney in one meeting for a flat fee.
The material contained or linked to in this blog is for general informational purposes only, and is not intended to create or constitute an attorney-client relationship between Courtney Law Office, PLLC and any person. The information is not offered as legal advice and should not be construed as legal advice. Readers should not act on the information presented without consulting an attorney about your specific situation. Communications with the Courtney Law Office are not confidential unless a legal relationship is established by a representation agreement. If you would like to establish a legal relationship and seek legal advice, please reach out.
