Kids Going Away to College?

Why You Should Include Estate Planning In The Preparation

You have likely been preparing for weeks to get your new college student off to school. It is exhilarating, and your heart may be bursting at the seams. You are probably prouder than words express, but you are also afraid. How can you ensure your child is safe at their new home away from home? A new matching sheet set for their dorm room does not seem like enough, does it? So, what else can you do? While this is probably not on your to-do list, bringing your child to a local estate planning attorney can make all the difference in college estate planning.

Although your child has graduated from high school and reached adulthood, they may still want you if they get sick. However, medical care decisions are legally theirs alone after they turn 18. If they were to become unconscious after a serious accident, you could not authorize medical care or make decisions about a treatment plan without first going to court. The court process would delay your ability to advocate for your child, and your appointment as guardian would ultimately be up to the judge, demonstrating the importance of college estate planning.

We do not want to worry you unnecessarily. Still, the unfortunate reality is that a significant number of people between 18 and 25 years old wind up in hospitals every year, and their parents are often kept out of the loop when it comes to making critical decisions during this phase of college estate planning.

Therefore, most experienced estate planning practitioners recommend that everyone over the age of 18 have a basic estate plan that includes a will, a financial power of attorney, and medical directives that allow someone they trust to act on their behalf if they are unable to advocate for themselves or make medical decisions. While your child must have the proper tools to ensure that their wishes are known and that trusted people will act on their behalf, they can choose whomever they want to fill these roles. These critical roles do not have to be given to you; this consideration is a crucial part of college estate planning.

Here are some things to take care of before you drop your child off at college:

• FERPA release. The Family Educational Rights and Privacy Act (FERPA) protects college students’ privacy but can leave parents locked out in an emergency. A properly worded release, signed by your child, allows school officials to talk with you and release your child’s records to you.
• HIPAA authorization. The Health Insurance Portability and Accountability Act (HIPAA) seeks to protect patients’ privacy. Consider having your child sign an authorization form just in case so that doctors can talk to you about your child’s condition, care, and treatment.
• Durable financial power of attorney. This legal document allows you to take care of your child’s checking or savings accounts, bills, and other finances if your child cannot—whether due to illness or location (for example, if the school is on the other side of the country or abroad).
• Medical power of attorney. Like the financial power of attorney, this document allows you to handle medical decisions for your child if your child cannot do so.
• Advance directive or living will. This tool allows your child to state their wishes regarding end-of-life care. Although we hope this tool is unnecessary, it provides the medical decision-maker with additional information to help them make the right decisions on your child’s behalf.
• Will. At first glance, this may seem silly for the average, often broke, college kid. However, most young adults have property or accounts they may want to plan for if something happens to them. For example, according to Dashlane, a company that offers secure online password managers and digital wallets, a typical email account is tied to 130 or more online accounts,^[1] each potentially with its own usernames and passwords. Does your child have thoughts about who should manage their social media and email accounts? Do they want someone to receive valuable gaming accounts? Or do they want all their apps and accounts closed at their passing?

We have been helping families attain peace of mind for years. Book a Free Discovery Call to protect your new college student and your family. Engaging in college estate planning can help provide that peace of mind.

^[1] Malaika Nicholas, 7 Features You Need in a Team Password Manager, Dashlane, (Feb. 5, 2024), https://www.dashlane.com/blog/7-features-you-need-in-a-team-password-manager.