With
back-to-school season upon us, it’s an issue that’s timely to consider. Once
your children turn 18, you are no longer entitled to see their medical records
and make decisions about their medical treatment—unless they take a few basic
estate-planning steps first.
When a child turns 18, the
transition to adulthood seems to be just beginning. And even if the new, young
adult is not quite an adult in their parent’s eyes, legally the transition is done. That being said, when should your adult
children have their own estate plan?
MarketWatch recently addressed this issue in an article titled “Why your kids need their own estate plan.”
Few 18-year-olds have their own
investments, retirement and insurance, let alone the complication of spouse and
children. For many, however, it is just a matter of time. Why, then, should an
18-year-old newly-minted adult need a plan for their estate?
Once this birthday milestone is
crossed, these “children” turned “legal adults” have new legal rights and
responsibilities. In fact, the basics of estate planning are as important for
them as for their parents.
Consider a very common example
of why young adults need a basic estate plan: healthcare. At age 17, if they
have an accident, then you (their parents and legal guardians) can step in to
make their medical decisions, pay their bills, and even demand grade cards from
their school. At age 18, however, all of that changes.
Should your adult child be
incapacitated in a serious accident, then you are no more than a perfect
stranger when it comes to your “legal” ability to take care of them and their
business. You have hit a legal wall of expensive red tape. Fortunately, this
wall is avoidable by proper planning.
Bottom line: whether you are a
newly-minted young adult, middle-aged, or elderly, proper estate planning is a
matter of personal responsibility. Basic estate planning tools include a health
care proxy and a financial durable power of attorney.
Please
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The archive on our website contains numerous blog posts on these legal
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Reference: MarketWatch
(August 6, 2013) “Why your kids need their own estate plan”