Does your 18-year-old need an estate plan?

Yes they do!

Here are three quick and easy estate planning steps for your newly minted adult:

1. Medical power of attorney and health care directive

   Once your child turns 18, the Health Insurance Portability and Accountability Act (HIPAA) eliminates the automatic access parents have to their child’s medical records. Completing a medical power of attorney with a HIPAA provision allows your 18-year-old to appoint someone to access their medical records and make decisions about their health care should they be incapacitated.

   Having an adult child with a terminal illness or in a permanent unconscious state is every parent’s nightmare. However, no parent in that situation wants to guess what their child’s wishes may be. A health care directive allows your new adult to make choices about end-of-life care, providing you with necessary guidance in a difficult time..

2. Financial power of attorney

   At the age of 18, you are no longer able to step in to assist with your child’s finances. A financial power of attorney can allow someone to step in to manage your child’s finances if they are incapacitated. But it is not limited to when your child is incapacitated. If your child is studying abroad and cannot access their financial accounts, a financial power of attorney would allow you to step in and assist.

3. Educational Records Release

   Your child is off to college or in the process of applying for college! As part of that conversation with your new adult, a discussion about their educational records and your access to those records is important. A Family Educational Rights and Privacy Act (FERPA) release executed by your new adult will give you access needed to provide financial aid, academic support, or in an emergency situation.

   A FERPA release may also be necessary during the college application process in order to allow schools and colleges to share education records and application materials with recommenders.  Not completing a FERPA can sometimes hurt your child’s chances of admission to a college. If your child doesn't waive the FERPA, colleges may be skeptical about the authenticity of their college recommendations and other materials.

But wait, does my 18-year-old need a will?

The short answer is maybe.

In Washington, if a child should pass before their parents, all of the child’s property goes to the parents under state intestacy laws. While your college student may not have many assets, a will would allow them to designate who would receive important items, such as jewelry, collectibles, or pets.

It's crucial to have open conversations with your child about these documents and empower them to make informed choices about who they trust to handle their affairs.