Two Powers of Attorney You’ll Want For Your College-Aged Child/Grandchild
On one hand, we have a tendency to view our children as resilient. On the other hand, our children have the belief that they are invincible. But mindsets are no substitute for clear written directives when health and wellbeing are at stake. If the past two years of living through a pandemic has taught us anything, it is the importance of having your house in order regarding financial and healthcare planning.
We want to bring to your attention two documents – healthcare directives and durable powers of attorney (POAs) – as it relates to college-age children, with particular impacts for those whose students are attending school out of state.
Why this matters.
When a child turns 18, they become a legal adult and are able to make their own healthcare and financial decisions. If they would become sick or incapacitated, having both a healthcare directive and durable powers of attorney in place allows parents to quickly step in and make decisions on their child’s behalf if for any reason they are unable to do so.
A health care directive / power of attorney (POA) – and why you need it
As far as health care decisions go, state law applies and most states have default statutes regarding who can make medical decisions on your behalf – and it might not be to your choosing. With many students traveling and attending college out of state, this can become an issue as both parent and child may not be familiar with a particular state’s law.
A health care POA is most important, as it authorizes someone else to make medical decisions on behalf of the child. It also gives access to medical records in the event the child is incapacitated or temporarily unable to make decisions on their own. The document is state-specific to where it will be used.
Durable POA for financial purposes
We also recommend a durable POA be put in place to make financial decisions on the child’s behalf. The financial POA is also state-specific. Even though your child might have a simple financial situation as a student right now, don’t overlook this document’s value. A Durable POA can authorize the designated agent to deal with student loans and sort out tuition bills.
It is recommended that you advise your attorney on what state your child is attending college, as different forms may apply. It is possible that two forms might be necessary, one for the student’s home state and one for the state where they attend college.
Why taking action now makes sense
With many college students returning home for summer break and high school graduates preparing to leave home to embark on their college journey, now would be an ideal time to take action if plans are not currently in place. Because these documents are relatively inexpensive and quick to put in place, it’s a smart decision for anyone with a college-aged child to have them drafted, should they ever be needed.
As always, if you have any questions regarding this or any other matter, please feel free to reach out to us.