Are Your Kids Heading off to College? Consider Setting Up A Power of Attorney

At the age of 18, a person is suddenly an adult and considered fully capable of making all of their own financial and medical decisions. But these subjects are insanely complex, and even the most responsible college freshman may need a bit of guidance from their parents for proper navigation. A Power of Attorney and a Power of Attorney for Health Care may be just the cushion young adults need to slip into the treacherous waters of adulthood.

Without a financial and health care power of attorney, a parent will not have the authority to make health care decisions or manage money for their child over 18 years old, even if parents are paying tuition and the child is still on their parents’ health insurance and claimed as a dependent on the parents’ tax return. If a college student or child over 18 is disabled in an accident, the parents will have to petition the probate to be given the authority to make crucial decisions for their child.

“A power of attorney is a legal document that allows one person (called the principal) to appoint someone else – called the agent or attorney-in-fact – to act on his or her behalf. The powers that can be exercised by the agent can be broad or narrow; the principal stipulates them in advance. There are three different types of powers of attorney:

• A conventional power of attorney gives the agent whatever powers the principal chooses for a specific period of time (e.g., 30 days) beginning when it is signed.
• A durable power of attorney stays in effect for the principal’s lifetime – beginning when it is signed.
• A springing power of attorney is triggered by a specific event, such as when the principal becomes incapacitated.”

See Meredith Murphy, Are Your Kids Heading off to College? Consider Setting Up A Power of Attorney, Smith Amundsen, July 10, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.