When it comes to estate planning, most people think it is about what happens to our stuff when we get older. Few people understand that it is also about what happens to ourselves while we are still young.
As soon as we turn 18 we are considered legally responsible for our own decisions in terms of finances and health. This means that parents of young adults lose their legal authority over their child and are no longer able to access their health or education records or assist in managing their affairs. For this reason, it is important that young adults get a set of documents known as advanced directives, as accidents or illnesses can occur at any time, and having a plan in place can alleviate stress and confusion for both the young adult and their loved ones.
Having these directives in place allows them to:
- Designate a person of their choice (usually a parent or close relative) to be legally allowed to access medical and education records, and assist with health and financial decisions in case of unexpected events or incapacity.
- Provide guidance to healthcare providers and family members about the young adult’s treatment preferences and who they would like to make decisions on their behalf. This ensures that their wishes and preferences regarding financial, medical care, and end-of-life decisions are respected.
What is included in this set of documents?
There are four documents we include in our Advanced directives packets:
- Power of Attorney: for financial and legal decisions
- Health Care Directives: for health care decisions
- FERPA authorization: which allows access to education records
- HIPPA release form: which allows access to medical records
Let’s take a deeper dive into each one
Power of Attorney
Young adults may need powers of attorney to authorize someone they trust to make important financial or legal decisions on their behalf. Parents may encounter situations where their young adult children are unable to manage their affairs due to unexpected events, such as an accident or illness, or when they are traveling or away from home and need someone to act on their behalf.
Powers of attorney can be durable or non-durable and can cover a range of decision-making authority, such as managing bank accounts, paying bills, signing contracts, and making medical decisions.
A power of attorney can help ensure that their financial and legal matters are taken care of according to their wishes, without the need for a court-appointed conservatorship or guardianship. Having a power of attorney in place can also prevent potential disputes among family members or other loved ones and provide peace of mind to both the young adult and their family.
Mental Health Power of Attorney
In New York, a mental health power of attorney is a legal document that allows an individual (referred to as the “principal”) to appoint a trusted agent to make mental health treatment decisions on their behalf in the event that they become unable to make decisions for themselves. This type of power of attorney is authorized by the Mental Hygiene Law in New York State.
A mental health power of attorney can be particularly important for individuals who have a history of mental health issues and want to ensure that their wishes regarding their mental health treatment are followed. The agent appointed in the power of attorney document can make decisions about the principal’s mental health treatment, including consent to or refusal of treatment, and decisions about hospitalization, medication, and therapy.
It’s important to note that a mental health power of attorney only applies to mental health, for general Medical Care you need the document up next.
Health Care Directives & HIPPA release
Health Care Directives (also known as a durable power of attorney for health care) provide a set of instructions for family and medical professionals to follow in the event of a medical emergency. A healthcare proxy should be familiar with their values and wishes, and will help plan for situations that cannot be foreseen, such as a serious car accident or stroke.
FERPA release
As a general rule, it is a good idea for college students to sign a FERPA release, as it allows their parents or legal guardians to access their academic records and other educational information. The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records, but it also allows for the release of those records to parents or legal guardians of dependent students under certain circumstances.
By signing a FERPA release, a college student can authorize their parents or legal guardians to access their academic records, including grades, transcripts, and financial aid information. This can be helpful for parents who want to stay informed about their child’s academic progress and provide support when necessary.
Now that we have talked about what these documents do and why they are important, let’s discuss how to set them up!
Because all 18-year-olds are considered legal adults, the decision to sign these Advance Directives should be made in collaboration with their parents or legal guardians and an estate planning attorney. While some documents you may obtain on your own such as the HIPPA release, the Financial Power of Attorney in particular is a powerful document that should be properly prepared by an attorney. This ensures that the documents will work as intended and your attorney can also provide counsel on how to use them correctly. Creating advance directives is an important part of planning for the future, if you are ready to get started make sure you contact us today.
https://yanafeldmanlaw.com/estate-planning-for-young-adults/
from New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/estate-planning-for-young-adults/
