Back to School and Beyond: Four Legal Documents for Young Adults

The start of a new school year is filled with excitement, anticipation, and a seemingly endless checklist. Parents help coordinate class schedules, dorm move-ins, meal plans, textbooks, and financial aid arrangements. Yet one important planning item is often overlooked: once a child turns 18, parents generally no longer have the same automatic authority to access medical information, make healthcare decisions, or handle financial matters on their behalf. 

This can come as a surprise, particularly when a child is still financially dependent on their parents, remains covered under a parent’s health insurance plan, or is claimed as a dependent for tax purposes. Legally, however, an 18-year-old is an adult, and none of those factors automatically give parents the authority to step in.

While no one likes to think about emergencies, accidents and unexpected medical situations can occur at any age. Having the appropriate legal documents in place can help ensure that parents or other trusted individuals are able to assist when needed, while providing valuable peace of mind for the entire family.

Four Important Documents to Consider for Young Adults

Durable Financial Power of Attorney

A durable financial power of attorney is an often-overlooked document for young adults, yet it can be one of the most valuable. This document allows a young adult to designate someone they trust, often a parent or other family member, to handle certain financial and legal matters on their behalf. Depending on how the document is structured and the authority granted, that individual may be able to access bank accounts, pay bills, manage investments, communicate with insurance companies, address lease obligations, or handle other financial responsibilities. 

Importantly, a durable power of attorney generally remains effective if the young adult becomes incapacitated. Without one in place, loved ones may have limited ability to assist with financial matters and may need to seek court intervention before acting on the young adult’s behalf.

HIPAA Authorization

A HIPAA authorization permits healthcare providers to share protected medical information with designated individuals. Many parents are surprised to learn that even during a medical emergency, doctors and hospitals may be limited in the information they can disclose about an adult patient without the patient’s consent or another applicable exception. A HIPAA authorization can help facilitate communication and allow parents or other trusted individuals to receive information about the young adult’s medical condition and treatment.

Healthcare Power of Attorney

A healthcare power of attorney authorizes a trusted person to make medical decisions if the young adult becomes unable to communicate or make healthcare decisions independently. For a college student living away from home, this document can provide reassurance that someone familiar with their wishes can advocate on their behalf when necessary.

Living Will

A living will allows a young adult to document their wishes regarding future medical care if they become unable to communicate those wishes personally. While many people associate living wills with older adults, they can be valuable at any age, as serious accidents and unexpected illnesses can occur regardless of age. 

A living will typically addresses preferences regarding life-sustaining treatment, artificial nutrition and hydration, resuscitation decisions, and other end-of-life care issues. By putting these wishes in writing, young adults can provide guidance to healthcare providers and loved ones and help reduce uncertainty during difficult circumstances. 

In many states, the HIPAA authorization, healthcare power of attorney, and living will are commonly prepared together as part of a broader healthcare planning package.

Why Age 18 Matters

For many families, these documents become relevant when a child leaves for college, starts a new job, joins the military, studies abroad, or moves into their own residence. Regardless of the milestone, turning 18 changes the legal relationship between parents and their children in ways many families may not fully appreciate until an emergency arises. The good news is that these documents are generally straightforward to prepare and can help ensure that trusted individuals are able to assist when needed.

While You’re Reviewing Their Documents, Review Your Own 

As you prepare your children or grandchildren for the new academic year, it is also an excellent opportunity to review your own estate planning strategy. Parents and grandparents should periodically review their wills, trusts, powers of attorney, healthcare directives, and beneficiary designations to ensure they continue to reflect current intentions, family circumstances, and financial goals. In particular, beneficiary designations on retirement accounts, life insurance policies, annuities, transfer-on-death accounts, and payable-on-death accounts deserve regular attention, as they generally control how those assets pass regardless of what a will may provide.

In Closing

For families with children approaching or already over age 18, these documents are worth discussing before they are ever needed. A conversation with a qualified estate planning attorney can help determine which documents are appropriate and ensure they are properly prepared under applicable state law.

Taking care of a few relatively simple planning steps today can help make it much easier for family members to provide support when it matters most.

This article is provided for informational and educational purposes only and should not be construed as legal, tax, estate planning, investment, or other professional advice. Individuals should consult with qualified legal, tax, and financial professionals regarding their specific circumstances. Means Wealth Management is a registered investment adviser. Registration with the SEC does not imply a certain level of skill or training.