This is because once your child turns 18, they become a legal adult. As such, you will no longer be able to have direct control over their healthcare and financial decisions because they will no longer be under your immediate care. Nevertheless, as young people finding their way in the world, it may be important that they have someone they can trust who can make decisions in their best interests if that should become necessary.

Power of Attorney for Healthcare

A Health Care Directive is a power of attorney for health care. This is a document that enables someone (the agent) to handle healthcare decisions on behalf of another person (the principal) in the event that the principal becomes incapable of making such decisions on their own. The agent will also be able to access the principal’s medical records and communicate with their healthcare providers.

It’s important to remember that a Health Care Directive can cover any medical situation, not just decisions that need to be made toward the end of life. Thus, if your college-aged child were to lose consciousness due to a disease or a debilitating accident, a Health Care Directive would allow you to make healthcare decisions in their best interest. Similarly, if they were to experience a mental health emergency and a medical professional deemed them temporarily incapacitated, the Health Care Directive would permit you to commit them for the evaluation and treatment they require.

Power of Attorney for Finances

Similar to the power of attorney for healthcare, a power of attorney for finances allows you as the agent to make financial decisions on behalf of your adult child. In the event that they become incapacitated in some way, this document will empower you to sell property, pay bills, and settle debt on behalf of the principal.

Even though college students do not tend to have high levels of wealth, a power of attorney for finances can be helpful, nonetheless. It can allow you as their agent to access the information you need to take care of credit card accounts, apartment leases, and even online accounts for their school, banking, email, and social media.

Speak to an Estate Planning Attorney

Of course, it isn’t possible to force your college-aged child to sign a power of attorney but having a conversation with them about the importance of having one can be helpful. Hypothetical worst-case scenarios may not be a pleasant topic for a young person just starting out on their own, but an experienced estate planning lawyer can help your college-age student understand why a power of attorney may be in their best interests.

If you have further questions about creating a power of attorney for your young adult or regarding estate planning in general, our Minnesota estate planning lawyer is here to provide clarity and guidance.  To schedule an appointment, simply contact us at 763-244-2949.

When working with an estate planning attorney to determine if you should create a trust for your children, you will need to determine the answers to several imperative questions. The first one most people ask is “how much?” How much money will you be leaving for your children? If you are leaving a considerable amount (say more than $100,000), or if you have very specific intentions for the money, then your Central Minnesota estate planning attorney may advise you to put the money into a trust.

The trust itself can give you the opportunity to really outline how you want the money to be used.  This can be helpful in ensuring that your children have the opportunities that you intend to provide.  Money may be set aside for the purpose of a college education, with stipulations that it is not to be used for other purposes (like a new car or a wedding, for example).  For minor children, this type of control may seem even more important, as the money in the trust can be designated for basic necessities such as food, medical care, and clothing.  This discourages a guardian from mishandling the funds.

Another question to ask regarding a trust has to do with when you want the funds to be dispersed.  Some people choose to defer the funds for a set number of years or until their child(ren) reach(es) a specific age.  This can be advantageous because very young people may not yet possess the maturity and life experience to handle a large sum of money well.  Access to a trust at a young age can also impede the child’s drive to pursue his or her own pursuits. An estate planning attorney can offer guidance in how other parents have chosen to deal with these concerns.

There are a lot of considerations to be made during the estate planning process.  A good attorney will help to identify which issues are the most pertinent for your particular situation and will then offer suggestions and solutions to any obstacles or concerns you may be facing.  Estate planning professionals understand the importance of using wills, trusts, and other tools in order to provide financial security for the next generation.

You should.

Did you know that Federal privacy laws (specifically HIPAA) strictly control the release of medical information without a signed release from the patient? Now that you’ve turned 18, you will be treated as an adult when it comes to privacy laws. Without the proper authorization, you could find yourself without a parent able to enter the emergency room and speak on your behalf. They may not be able to voice an opinion to Medical personnel regarding treatment options, or even receive an update on your condition. By signing a HIPAA release BEFORE you collide with that bus, your parents can have the immediate ability to communicate with your doctors and insurance providers, reducing stress during an emotional time.

Besides the Health Care Directive and HIPAA Release, you should also consider having a Financial Power of Attorney in place. By granting someone Power of Attorney, you’re saying you trust them enough to act as your “attorney-in-fact” and handle financial matters in your place. A Power of Attorney can provide authority to access bank accounts, pay bills, and apply for social security or government benefits on your behalf. Having a power of attorney may eliminate the need for a court conservator proceeding. Remember that bus? While you’re happily resting in a coma, your attorney-in-fact can pay the rent so you still have a home to return to once you wake up.

Call me at Lewis Kannegieter Law, Ltd. and I’ll walk you through the steps of creating these two documents as efficiently as possible. I understand how important it is to be legally prepared and move on with really living your life (bad neighbors and all). These documents won’t need to be changed unless you choose a new attorney-in-fact or health care contact down the road. With these documents tucked away, you can get back to the business of creating your career and future. It doesn’t take much time. And it doesn’t take a lot of money. But it could make a world of difference. Call us today to schedule your Peace of Mind Strategy Session.

Really, “yes” is the only answer that’s needed, but I will take a moment to offer some insight as to why single people need to worry about estate planning.

When there is no plan

First, it is important to understand what happens if there is no plan. If you fail to plan the laws of Minnesota will decide for you in the event of a medical emergency or death. These laws will decide what happens to you, your body, and your stuff. These laws will also decide who is the person who can and should make decisions for you. This means that if you are unable to communicate your wishes, the state will step in and impose its own plan. The laws also provide a court process where everything will be handled. If your loved ones don’t agree with the state’s default plan, there could be a contested court battle over it. One of the most important reasons for a single person to work with an estate planning attorney is to be in control of what happens.

The importance of a Health Care Directive 

Next, consider who would be able to tell the doctors what you would want in the event of a medical emergency? Hopefully, that person would be one of your parents or siblings if you don’t have a plan in place. Without a plan, the courts will most likely appoint your nearest legal relative. If the best choice would really be a good friend, other family member, or possibly a significant other to whom you’re not legally married, the courts won’t care. They will stick to the predetermined law, and that law will look at bloodline relatives first. But if you want to make your own decisions, a Health Care Directive is a simple legal document that allows you to decide who will serve as your Health Care Agent and what decisions will be made. 

The need for a Power of Attorney 

Likewise, if you are unable to take care of your own finances for any reason, the courts will likely appoint the closest blood relative to step in.  It doesn’t matter what you want. They will have access to your money and will be put in charge of managing it, paying your bills, etc.  Think about how your oldest sibling manages his or her money.  Would you be comfortable with that person being in responsible for yours? A Financial Power of Attorney gives you the opportunity to decide who will be the one to handle your finances should the need arise. 

What happens to your estate?

Finally, should you pass away without an estate plan, your assets will automatically go through the Minnesota probate process. Again, the courts will step in and determine who is to handle the probate process and who is to inherit your property and money; and you will have absolutely no say in the matter. However, some simple estate planning can give you control over what happens. 

Estate planning is for everyone

None of these scenarios is even a little bit exaggerated. Failing to plan will result in the state stepping in and imposing the default plan in your situation. Your loved ones could get caught up in a long, expensive, court battle. Your wishes will not be followed. Estate planning is not just for families or the wealthy. Estate planning is for everyone. It is important for all adults, including single individuals, to think about estate planning. Remember, it’s not just about having a lot of assets to leave behind; it’s about making your own decisions regarding your medical care, your possessions, and your finances.  

In the event of a medical emergency, if a young adult is conscious and competent to make decisions, the doctors will ask the patient about his or her preferred course of treatment. Even if the individual is unable to speak, he or she may still be able to communicate by using hand signals or even blinking one’s eyes in response to questions.

But what happens in instances where the young adult is incapacitated and unable to make decisions? Who will decide on the best course of treatment? Without advance directives, the answer to this question can be unclear, often causing the family of the incapacitated person emotional stress and financial hardship.

In instances of life threatening injury or an illness that requires immediate care, the doctors will likely do all they can to treat the patient as aggressively as possible, relying on the standards of care to decide on the best course of treatment. However, if there is no “urgent” need to treat they will look to someone else who has authority to make those decisions on behalf of the young individual. Most states have specific statutes that list who has priority to make decisions on behalf of an incapacitated individual, when there are no advance directives in place. Many states favor a spouse, adult children, and parents in a list of priority. Doctors will generally try to get in touch with the patient’s “next of kin” to provide the direction necessary for treatment. States also have laws providing for the appointment of a guardian who would have authority to make decisions for an incapacitated individual. A guardianship proceeding can be costly

A number of recent high-profile court cases remind us of the dangers of relying on state statues to determine who has the authority to make healthcare decisions on behalf of the ill. What happens if the parents of the incapacitated disagree on the best course of treatment? Or what happens if the patient is estranged from her spouse but technically still married- will he have ultimate say? For most, the thought is unsettling.

To avoid the unknown, it’s highly recommended that all adults, regardless of age, work with an estate planning attorney to prepare advance directives such as a Health Care Directive that includes a health care power of attorney (or health care proxy) as well as a living will that outline their wishes and ensure compliance with all applicable state statutes.

Think you don’t need an estate plan because you have very little in terms of assets?  Not true. Here are seven excellent reasons for young people to complete a last will and testament. And they have very little to do with money.

1. You want to protect your family from red tape. If you die without a will, your family will have to take your “estate” (whatever money and possessions you have at the time of your death) through a long court process known as probate. If you had life insurance, for example, your family would not be able to access those funds until the probate process was complete. A couple of basic estate planning documents can keep your estate out of the probate court and get your assets into the hands of your chosen beneficiaries much more quickly.
2. You care about what happens to you if you are in a coma or persistent vegetative state. We all see the stories on the news – ugly fights within families over the prostrate bodies of critically ill children or siblings or spouses. When you write your will, write a health care directive (also called a living will) and a financial power of attorney as well. This is especially important if you have a life partner to whom you are not married so they can make decisions on your behalf.
3. You want to give money or possessions to friends or charities. When someone dies without a will, there are laws that dictate who will receive any assets. These recipients will include immediate family members like parents, siblings, and a spouse. If you want to give assets to friends or to a charity, you must protect your wishes with a will.
4. You own an animal.  It is common for people to include plans for their pets in their wills. If the unthinkable were to happen and you died unexpectedly, what would happen to your beloved pet? Better to plan ahead for your animals in the event of your death. You can even direct the sale of specific assets, with the proceeds going to your pet’s new guardian for upkeep expenses.
5. You have social media accounts. Many people spend a great deal of time online, conversing with friends, storing important photos and documents and even managing finances. Without instructions from you, will your family know what to do with your Facebook account, your LinkedIn account, and so forth?
6. You are entering the military.  Anyone entering the military, at 18 or any other age, should make sure his or her affairs are in order.  Even for an 18-year-old, that means creating a will and other basic estate planning documents like a health care directive and powers of attorney.
7. You received an inheritance.  You may not think of the inheritance as your asset, especially if it is held in trust for you.  But, without an estate plan, the disposition of that money will be a slow and complicated process for your surviving family members.