No one expects to need urgent medical care. One Friday night, Brittany, a San Diego college student, was driving with friends to a favorite restaurant to grab a bite. Suddenly, an out-of-control driver sideswipes them, sending the car careening into a light pole, leading to some serious injuries. Brittany is taken to the local hospital, unconscious.
The friend driving the car frantically calls Brittany’s parents to relay the bad news. Panicked, they call the hospital to check on her condition. But because she’s 18, the nurses can’t give the parents any information. Brittany might need surgery, but the doctor won’t speak with the parents about it. They can neither authorize nor prevent the surgery―Brittany didn’t sign a Power of Attorney for Health Care that would have permitted her parents to make these decisions if she became unable to do so for herself. Legally, the parents are no different than any random stranger off the street. They feel helpless.
Introduction
When students excitedly (or nervously) head off to college, estate planning is the last thing on their minds. However, turning 18 marks a critical milestone in adulthood, bringing newfound legal rights and responsibilities.
Estate planning is often thought of as a necessity for the middle aged. Actually, every 18-year-old should create an estate plan that includes essential documents such as a Power of Attorney (POA) and an Advance Health Care Directive (AHCD). This blog post outlines why estate planning is crucial for young adults, particularly to ensure their well-being and protect their interests while away from home, and identifies many of the most important documents.
Legal Autonomy at Age 18
In California, when an individual turns 18, they are a legal adult with the right to sign binding contracts and make independent decisions about their finances and healthcare. However, this newfound autonomy can present challenges, especially when unforeseen circumstances arise. Having an estate plan in place empowers college students to dictate their wishes and designate trusted individuals to act on their behalf.
Healthcare Decision-Making
Illnesses or accidents can occur at any time, and a young adult may find themselves unable to make medical decisions. An Advance Health Care Directive allows an individual to appoint someone they trust (usually a parent) to make medical decisions for them if they become incapacitated or unable to communicate their wishes. This document ensures that their healthcare preferences are respected and expedites the decision-making process.
Financial Decision-Making
Managing finances can be overwhelming, especially for college students juggling tuition fees, loans, and everyday living expenses. By establishing a financial Power of Attorney, students can grant a trusted individual the authority to manage their financial matters in case of emergencies or situations where they are unable to handle their own affairs. This helps ensure bills are paid, contracts are managed, and financial decisions are made in their best interest.
Access to Medical Information
Under the Health Insurance Portability and Accountability Act (HIPAA), a person’s medical information is protected and cannot be shared without their explicit consent. By signing a HIPAA Release Form as part of the estate plan, young adults can authorize their parents or designated individuals to access their medical records and communicate with healthcare providers. This access becomes crucial in emergencies when timely medical information can make a difference.
Protecting Digital Assets and Online Presence
“Digital assets” are an individual’s online possessions and virtual presence. These include things like social media accounts (e.g., Facebook and Instagram), email accounts, and online financial accounts. In addition, digital assets can comprise digital photographs, music or video libraries, personal blogs or websites, digital currencies like Bitcoin, online subscriptions, and intellectual property rights.
When creating an estate plan, it is crucial for college students to consider these digital assets and make provisions for their management and transfer. This ensures that their online legacy is safeguarded, and their wishes regarding these digital possessions are respected and appropriately addressed.
Conclusion
Creating an estate plan that includes a financial Power of Attorney, an Advance Health Care Directive, and a HIPAA Release Form is important when individuals reach the age of 18. These legal documents empower them to proactively protect their interests, ensure their wishes are respected in healthcare and financial matters, and establish a safety net in case of unexpected events.
Consulting with an experienced estate planning attorney can help students navigate the process, address their specific needs, and provide invaluable guidance during this significant transition into adulthood. By taking proactive steps towards estate planning, college students can safeguard their future and focus on their educational journey with confidence.