If this is the year your child turns 18 and heads off to college or maybe takes a gap year to work and/or travel, it’s time for them to put some documents in place that are widely associated with “estate planning.”
They likely don’t need a will or living trust yet. However, they do need to ensure that someone is authorized to make medical and financial decisions for them should they become incapacitated. That can happen to anyone, any time, regardless of age or physical condition.
Medical decision making
Once a child turns 18, parents typically no longer have the automatic legal right to direct their medical care or even to get information about their condition. By giving one or both of you power of attorney (POA) to act as their health care agent, they give you the right to interact with their medical team and make decisions on their behalf regarding their care. Of course, they have the right to choose another adult for this responsibility instead – a best friend, boyfriend or girlfriend or older sibling, for example.
It’s also wise for them to create a living will or “declaration.” In Nevada, this is in the same set of forms as the POA designation. This document allows them to detail their wishes for things like end-of-life treatment, organ donation and more so that their medical team and their loved ones know what they would want if they can’t speak for themselves.
Financial responsibilities
Another area to address is who will handle financial matters for them if they’re unable to do so themselves. While your teen likely doesn’t own a home or have much of a stock portfolio, they probably have a bank account, a credit card and at least a few bills to pay. By giving one or both parents (or another adult POA over their finances, they help ensure that their financial obligations won’t lapse if they are unable to manage them for a time.
No parent wants to plan for a time when their child might be seriously ill or injured. However, just as with insurance policies and emergency kits, it’s smart to have them rather than be left to face even more complications if a catastrophic event occurs.
Remember that as a legal adult, your child is responsible for choosing the one(s) to whom they will be entrusting these responsibilities. Guiding them toward an experienced legal professional can help them make informed decisions.
