Congratulations! Your child is now legally an adult. Your legal authority over your 18-year-old is limited, if not completely nonexistent. While this newfound freedom may sound exciting to your new adult, they should consider the following:
● Who can access their medical information? Legal adults are protected by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). This means that medical professionals can disclose their private medical information only to those individuals they have authorized. If parents are to continue having access to this information, your grown child will need to prepare a HIPAA authorization form appointing his or her parents as an authorized recipient.
● Whom will be making medical decisions? As a new adult, the 18-year-old must formally give parents this authority if parents will continue to make medical decisions. The new adult can provide authority for parents to make medical decisions only if the principal is unable to communicate or make medical decisions for themselves. Authority can be given by preparing a health care power of attorney. Not only can the adult name someone to act on his or her behalf (an agent), but he or she can also provide some general guidelines regarding his or her healthcare wishes.
● Who can handle financial decisions? Having a power of attorney for property in place may also be helpful. Until now, a parent could withdraw from a bank account or sign something on the child's behalf without additional steps. However, to allow them to continue engaging in these same tasks, they will need authority through the power of attorney. Just like with medical decisions, the adult need not give parents this authority and is free to choose whomever he or she desires.
● Who will wind up the new adult's affairs if they die? Young adults may think they have no assets, but they actually do. For example, in this digital age, each social media account is considered an asset. What will happen to these accounts if the young adult passes away? They likely also have tangible personal property (e.g., personal items, collectibles, jewelry), which might have more sentimental than financial value. A will or trust allows the new adult to give what they have to whom they want in the manner they want, no matter the monetary value.
When your child turns 18, it is time to start thinking and planning for the future. The first step is to meet with an experienced estate planning attorney. We are here to help you navigate this next chapter in your child's life and ensure they are protected.