Young Adults Need Planning Too

As the days of summer start to wind down, many families' attentions turn to seeing their young adult children off to college or work. And while many young adults still feel very much in the family fold, when they reach the age of majority (18 in DC and Maryland) they become entitled to certain privacy rights for which families should be prepared.

Once children reach the age of majority, their parents are no longer entitled to have access to medical, educational, and financial records of their children. There are logical and important reasons to protect the privacy of young adults. However, just as middle-aged and older adults plan for potential illnesses, incapacity, and emergencies, so should young adults.

Without planning documents in place, if a young adult becomes incapacitated, a parent cannot access their child's finances or make health care decisions for them without a legal proceeding to establish a conservatorship or guardianship. These proceedings can be costly and time-consuming at a stressful time when quick action may be required.

Young adults should have some basic estate planning documents in place to make sure their affairs can be managed and their wishes can be carried out, in case of an emergency or incapacity.

First, young adults should make sure they have a health care power of attorney that includes health care directive language. Health care powers of attorney designate an agent that makes decisions on behalf of a person should they become incapacitated and unable to make health care decisions for themselves. This document can also provide guidance to the agent to help them make decisions on behalf of the person executing the document.

In addition to a health care power of attorney, young adults should execute a Health Information Portability and Accountability Act (HIPAA) waiver to make sure their designated agent can have access to important medical information. HIPAA protects an individual’s health information and prohibits providers from disclosing that information to anyone without the individual's consent. Even if a young adult is still covered under a parent's health insurance plan, HIPAA applies to their medical records. HIPAA waivers are important because they allow a parent to be involved in their young adult child's medical care even if the child is not incapacitated.

Young adults should also have a durable power of attorney for financial and legal matters. While many young adults do not have a lot of assets, they still have financial affairs to manage and may need someone to represent them with any legal matters should they become incapacitated.

For young adults with any significant assets, it may also make sense to put in place a will to make sure their wishes are carried out with respect to those assets.

While it is common to overlook the planning needs of young adults, making sure they have the proper documents in place can prevent difficult and time-consuming legal proceedings should anything happen to them. Ozdeger Law provides young adult planning packages. Book a consultation to get started on ensuring that your young adult children are protected!