When most people first go off to college the last thing they think they need is an estate plan. However, there are two very important estate planning documents that every college student should have before they leave home.
Recently, Forbes published an article titled "Two Documents Every 18-Year-Old Should Sign." As is clear from the title, before parents send their children off to college for the first time, they need to make sure their college students have certain legal plans in place in case of an emergency. The article provides some thought-provoking examples of what can happen if these documents are not signed.
So, what are these two key legal documents? The General Durable Power of Attorney and the Health Care Power of Attorney.
Typically, these two documents come as standard issue with any comprehensive estate plan. College students need them because, if an accident should occur, then parents are not automatically given the ability to handle their child's finances or make their medical decisions. Even if the student is still entirely dependent on the parent, once the student turns 18 the parents cannot legally deal with the child's needs in an emergency … without the child having signed the necessary paperwork ahead of time.
A General Durable Power of Attorney gives someone the ability to handle financial matters for a person who is incapacitated. Thus, if your child has an accident, you can still make sure rent and other bills are paid. A Health Care Power of Attorney gives you the ability to make medical decisions for your child if he or she is currently unable to do so. In the event of an emergency, parents can tell doctors how to treat their injured children.
Getting these two documents is easy. Likely, a quick visit to an elder law or estate planning attorney will do the trick. In all probability, these documents will not be necessary while your children are away at college. However, if your child is in an accident or gets ill, then you will be very glad these two estate planning documents were executed beforehand.
Reference: Forbes (August 15, 2014) "Two Documents Every 18-Year-Old Should Sign"