Just Turned Eighteen? It Might be Time for a Power of Attorney!
While most people don’t start thinking about estate planning until they’re well into adulthood, it’s possible to execute estate planning documents as early as age eighteen. Most eighteen-year-olds probably haven’t given much thought to the ultimate disposition of their assets, but it may still be wise for newly minted adults to execute some basic estate planning documents, especially if they’re about to head off to college or otherwise set off on their own. In particular, health care and financial powers of attorney can be beneficial to the young adult who could still use some parental support from time to time. If you or your young adult child are interested in learning more about how powers of attorney and other documents might make for a smoother transition into adulthood, please read on and consider getting in touch to schedule a free consultation.
Prior to turning eighteen, a person is considered a minor in the eyes of the law. During a person’s minority, the law views the minor’s parents as the minor’s “natural guardians.” As natural guardians, the minor’s parents are responsible for the minor’s personal welfare and can make decisions on the minor’s behalf, including medical and financial decisions. However, things change once the minor turns eighteen. The minor is then an adult who can vote, enter into contracts, join the military, and function independently in the world – no one else has the power to speak on behalf of the adult or make decisions for him or her. This can leave parents unable to help their child navigate early adulthood as easily as they and the child might like, which is where health care and financial powers of attorney can help.
Even if a young adult is living alone and earning money, they may still benefit from having a parent help with paying bills, filing taxes, negotiating leases, and things of that nature. However, since the parent is no longer the young adult’s natural guardian, the parent will be unable to take any sort of action on the young adult’s behalf with respect to assets and finances unless the young adult has executed a financial power of attorney which names the parent as agent. In addition to allowing the parent to handle matters related to assets and finances, a financial power of attorney can include language that allows the parent to interact with their adult child’s school. Without this express permission, the parent will not have access to the adult child’s grades, won’t be able to review school-related financial statements, and won’t have the ability to speak with the adult child’s teachers or academic advisors.
Similarly, without a health care power of attorney, the parent may have trouble advocating for their adult child in the event the child becomes incapacitated and needs medical care. This is true even if the adult child is still on the parent’s health insurance, and even if the parent is paying for the child’s medical treatment. While the law does say that in certain circumstances an incapacitated person’s parents can make health care decisions for them in the absence of a health care power of attorney, a health care power of attorney can allow the parent to take action faster. It may also be helpful for the young adult to execute a HIPAA authorization form in addition to a health care power of attorney so that the parent can communicate freely with the child’s doctors and stay informed about the child’s medical status, even during times when the child is not incapacitated.
It's important to remember that while parents may be eager to have powers of attorney put in place for their young adult children, the children themselves may not be so keen. Some young adult children may not understand why the parents want the child sign these documents, and may view the parents’ request with skepticism. Parents should take time to explain to the child the reasons for wanting the child to sign the documents. Otherwise, the child may assume some sort of ill intent (e.g., “why are you trying to control me?”) and refuse to sign anything.
Parents should also understand that a lawyer who drafts the documents for the child’s signature will have an attorney-client relationship with the child, and will owe the child all of the usual duties that a lawyer owes to any client. The lawyer will ultimately be taking direction from the child regarding the content of the documents, which may result in the lawyer drafting documents for the child that differ from what the parent had in mind. This could be the case even if the parent is an existing client of the lawyer, and even if the parent is paying the lawyer to draft the child’s documents. Again, communication is key to ensuring that both parent and child are comfortable with the documents to be produced, and both parties should understand the dynamics of the principal-agent relationship that they will be entering into once the documents are executed.
Powers of attorney can be helpful tools for a young adult. The young adult can enjoy all of their new freedom and agency while still taking comfort in the fact that their parents are able to step in and help if needed. If you have a young adult child in your life – or if you are, yourself, a young adult – who would like to sign powers of attorney before leaving the nest, I hope you will call or email to schedule a free consultation. A complete set of powers of attorney and related documents can be prepared quickly, conveniently, and at a low cost.
The information contained in this blog post is intended only as general legal information and should not be construed as formal legal advice on any matter, nor should its presentation be construed as intent on the part of The Law Office of Ryan A. Layton, PLLC to form an attorney-client relationship with any user of this website. For more information, please see this disclaimer.