In years past, August was a time for excitement and anticipation: going back to school! This was especially the case for recent high school grads preparing to start their first year of college.

But this year is marked by anxiety. Yes, all the essentials need to be arranged: dorm supplies, computer, books, and more. For a COVID-era college student, though, there’s a new essential on the list: an estate plan.

Estate plans aren’t just for parents and grandparents anymore. Estate planning helps emerging adults - whether they are going to college or not - with important documents that can provide the whole family with peace of mind.

Four documents are particularly useful in this situation: Health care power of attorney; HIPAA authorization; financial power of attorney; and a will.

Health care power of attorney

Also known as a “health care proxy” or “durable medical power of attorney,” these documents let your child designate someone - usually a parent or trusted family member at this stage of life - to make decisions regarding health care on their behalf if they aren’t able to. The document should outline their general health care wishes and how they wish to see major decisions made.

HIPAA authorization

Alongside the health care power of attorney, Health Insurance Portability and Accountability Act (HIPAA) authorization allows providers to share information about the individual’s medical condition. Essentially, HIPAA authorizations keep health care proxies from operating in the dark when making medical decisions.

Financial power of attorney

By appointing a financial power of attorney, an individual designates someone to make financial decisions and/or transactions on their behalf. In normal circumstances, a college student might authorize their father to handle bills and other financial obligations while they are studying abroad. For COVID-era concerns, if a child was to require serious medical attention and be incapacitated, the financial power of attorney would allow the appointed individual to make financial decisions during this time. (Also known as “durable power of attorney”)

Will

Most young adults in their late teens and early twenties don’t have wills put together. However, it makes sense during this time to consider having one drawn up. If your child has assets, then it’s especially important. A will structures the distribution of property after an individual passes, appointing an executor or representative to be responsible for how property is distributed and managing the estate if it goes through probate.

If you have questions about any of these documents, don’t hesitate to contact us at Smolin Lupin. All parents worry when their child goes to college, but we can help provide some peace of mind that your child’s financial and medical affairs are managed.