Sending your child off to college? Don’t forget these important documents
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My daughter is heading off to college this fall for the first time and the list of tasks to complete before she even steps on the quad is daunting and exciting. The university has provided to-do items, friends and family have offered tips and tricks, and I just added estate planning to the list. That’s right, before my 18-year-old daughter leaves our home, she will have executed her financial power of attorney, HIPAA release, healthcare power of attorney, living will, and last will and testament.
Why? Because she is legally an adult and without these documents, my husband and I would not have access to her financial accounts or medical records in the event of an emergency.
Durable Financial Power of Attorney
Hopefully, your adult child has experience managing their finances such as maintaining a checking account and paying bills. However, in the event of a mishap or incapacity, a durable financial power of attorney will allow you to pay your student’s bills, sign legal documents, or assist with tax returns.
Universal HIPAA Release Form
The 1996 Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of medical records, which means that if your adult child has not signed a HIPAA release form, you may not be able to find out about their condition if they become sick or injured. That can be downright scary. While your adult child might have signed a HIPAA release with your local doctor, that will not transfer to another provider; therefore, your college student needs to sign a universal HIPAA release form that isn’t limited to a single provider. If your young adult balks, let them know that they can specify information they do not want shared. Moreover, if they want your help in obtaining lab results to send to the university, you can make their life easier and assist them.
Health Care Power of Attorney
A health care power of attorney allows a trusted, designated individual to make medical and health care decisions on behalf of the adult child should they become incapacitated and unable to communicate such decisions. This document will allow you to advocate and make medical treatment decisions for your college student should they end up in an emergency room or need some other type of medical care. If your child is attending school out of state, ensure that the health care power of attorney document is valid in both states.
Living Will
No one wants to think about the worst-case medical scenario, and one especially doesn’t want to think about it regarding their child. But if a medical crisis does occur, you want to be ready with a living will that allows the young adult to indicate ahead of time the types of lifesaving measures that are acceptable to them, for example, CPR, ventilators and artificial nutrition. A living will can also address decisions about pain management and organ donation. Most states honor valid living wills from another state, but it would be wise to confirm.
Last Will and Testament
Your adult child should also sign a simple will designating how they would like their assets distributed – no matter how limited – in the event of an untimely death. Typically, the young adult will name parents and/or siblings as beneficiaries, but they should also consider how they want their assets distributed if no named beneficiaries survive. Perhaps your adult child has a favorite charity that can be named the ultimate beneficiary. It’s important that the will addresses digital assets of the young adult so that the executor can manage their online accounts as well.
What’s a Ferpa?
Many of my clients lament that they cannot access grades, student account information, etc., even though they are paying the college tuition bill. That is due to the Family Educational Rights and Privacy Act, or Ferpa. To gain access to this information, your student will need to complete a Ferpa waiver. Most schools allow students to complete this form online.
Summary
It’s hard to think about having our children implement these documents at a seemingly young age, especially during an exciting, and also nerve-wracking, time for all. Doing so, however, can make a difficult situation less tense and traumatic by planning ahead. Moreover, you are introducing important topics to your adult child. Here’s to happy and successful college years!
Meredith Carbrey, CFP, is a Senior Wealth Advisor with Bedel Financial Consulting, Inc., a wealth management firm located in Indianapolis. For more information, visit their website at www.bedelfinancial.com or email Meredith at mcarbrey@bedelfinancial.com