Every August the parents of college bound students usually add to their child’s “pre move-in check list” that they meet with an estate planning attorney to prepare a Health Care Proxy and Power of Attorney for them. I have always admired these young students and their families for taking the time to do this important task. You might not think of a college student as an individual who needs Advanced Directives or a Last Will and Testament, but these documents, even if simple in form and substance, can provide significant peace of mind and protection.
Why Estate Planning Matters for College Students:
- Health Care Decisions: If a college student is involved in an accident or falls seriously ill, the student’s parent or guardian may not have the authority to make decisions for them by virtue of being their parent or guardian if the student is over the age of 18 (which most college bound students are). While in New York, the Family Health Care Decision Making Act, allowing next of kin to handle medical decisions may be used for surrogate decision making in a hospital setting, many children choose to go to college outside of the State of New York. Generally speaking, a parent’s right to make medical decisions for their child and gain access to their medical information terminates once the child reaches age of majority. An advance directive or health care proxy allows students to designate someone to make those decisions if they’re unable to communicate their wishes. This is a very important document for everyone over the age of eighteen to have.
- Financial Management: Without a legal framework, managing a student’s financial affairs—such as accessing bank accounts, handling student loans or filing tax returns—can become complicated if they are incapacitated or if they are studying abroad and unable to sign legal and/or financial documents. A durable general power of attorney allows someone else to manage the student’s financial matters if needed.
- Personal Belongings: Even students with modest possessions should consider how they want their belongings distributed. A basic will can ensure that personal items like electronics, books, or even sentimental items are passed on according to their wishes.
- Peace of Mind: Having a plan in place can alleviate stress for both the student and their family. Knowing that there are clear instructions will help avoid confusion and disputes during difficult times.
Important Documents for College Students
- Durable General Power of Attorney: This legal document allows the student to designate someone else, such as a parent, sibling, trusted relative or dear friend to manage his or her their financial affairs if they are unable to do so themselves. While the college student may not need a very broad Power of Attorney, or inclusion of modification provisions, such as those allowing for gifting of the student’s assets, it can be very helpful in case of an emergency or incapacity to allow a trusted individual to access and assist the college student with his or her finances.
- Health Care Proxy: This document allows the college student to appoint someone to make medical decisions on the college student’s behalf if he or she is unable to do so. It’s crucial for ensuring that the student’s health care preferences are followed and that the person the student wants to be making those decisions has been appointed.
- Basic Will: If the college student has bank accounts, investment accounts or any monies or property in his or her name alone, a simple will might even be prudent to specify how his or her belongings should be distributed and who will be responsible for carrying out said wishes.
Final Thoughts
In my opinion, creating an estate plan as a college bound student is a wonderful way to ease the transition into adulthood. While estate planning might seem like an unnecessary task, it is a proactive step toward empowering the college student to make decisions for their future and feel reassured that they have prepared for the unexpected.
