The Two Estate-Planning Documents Clients Need for College-Bound Kids
Estate Planners are seeing a new trend where their clients are increasingly requesting to put estate-planning documents in place for their college-bound kids. This aligns with the new data that shows young adults are the primary spreaders of COVID-19.
As experts in the U.S. fear that students returning to schools and colleges will increase the number of COVID-19 cases, parents are planning for this by asking attorneys to put health care directives and durable powers of attorney (POAs) in place for their children.
Health Care Directive
For health care decisions, state law applies and most states have default statutes for who can make medical decisions on your behalf. However, it is not always the order you want. This can be problematic when children are out of state at school because they might not be familiar with that state’s laws.
A health care POA is most important, as it authorizes someone else to make medical decisions on behalf of the child, and gives access to medical records in the event that the child is incapacitated or temporarily unable to make decisions for their self. This document is state-specific to where it will be used.
Another option people are selecting as well, is a durable POA to make financial decisions on their child’s behalf. This is also state-specific. The financial POA can authorize the designated agent to deal with student loans and sort out tuition bills.
Both documents are relatively inexpensive and quick to put in place. It’s a good idea for parents with kids heading back to college to have them.
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This post was created on the basis of Anna Sulkin’s article for WealthManagement.com.