Does your college student need an estate plan?
When you’re packing your young adult child off to college, you’re full of hopes and dreams for their future. Why, then, would you (or they) be thinking about estate planning?
The answer is that everybody needs an estate plan, no matter their age or assets – and that includes young adults. Here’s why.
They have more assets than you probably realize
While your college student probably doesn’t have a big investment portfolio or real estate, they likely do have some assets – even if that’s just their bank account, car, laptop and social media accounts. They may also have numerous items of significant sentimental value that they want to leave to those that they love the most.
If someone were to happen to them, do you know whom they want to receive their personal belongings? An estate plan ensures that their wishes are spelled out so they can be followed.
They need a plan for health care decisions
Health care agents with power of attorney (POA) are critical parts of an estate plan. Since your child is a legal adult, you no longer have the automatic right to make decisions about their health care in an emergency. If your college student is in an accident or becomes seriously ill, they need someone they trust in charge of their medical care if they cannot speak for themselves.
An estate plan can also include a living will that outlines their medical wishes and a HIPPA (Health Insurance Portability and Accountability Act) authorization that will allow you access to their medical records. That could be essential if your child is incapacitated for any reason.
While it may seem a little depressing (or even scary) to talk about estate planning with your college student, it’s a conversation you should have today.