Two Documents Every 18 Year Old Should Sign
Whether your young adult lives at home with you, attending college or out on their own, we recommend that your child sign a Durable Power or Attorney for Finances and a Power of Attorney for Health Care. These two estate planning documents, more commonly associated with older folks are essential for younger people too. Without them, in most states parents don’t have the authority to make health care decisions or manage money for their kids once they turn 18—even if they are paying the tuition, still have those kids on their health insurance plans and claim them as dependents on their tax returns. That means if a young adult is in an accident and becomes disabled, even temporarily, a parent might need court approval to act on his or her behalf.
As unpleasant as it is to think about, making sure your child has the following basic documents now is better than facing an emergency situation unprepared later.