Why Your College Student Needs an Estate Plan

So your child, or children, are going off to college. Wonderful! They're starting on (or continuing) a great educational adventure that is a big change in their lives. Another big change is that they are now over 18. This means that the law sees them as adults, and your ability to step in during emergencies isn’t guaranteed.

As parents, you’ve spent years protecting and providing for your child. But now the situation has changed, and doing this becomes more complicated. This is why before your child heads off to college — or goes back after their break — you should make sure that you have the legal tools to protect their health, finances, and future.

This means securing estate plan documents for them.

Benefits of an Estate Plan for a College Student

There are several reasons why your student needs an estate plan:

1. 1. Ensure Access to Medical Records and Decisions. Once children turn 18, parents no longer have automatic access to their medical information due to HIPAA regulations. A HIPAA authorization and medical power of attorney can ensure parents can make informed decisions during emergencies.

   2. Emergency Financial Management. A durable power of attorney allows parents to manage their child's financial matters, such as tuition, bank accounts, or leases, if the child becomes incapacitated or unavailable.

   3. Plan for Unexpected Tragedies. No one expects young adults to pass away, but an estate plan ensures their assets, including bank accounts, vehicles, and sentimental possessions, are distributed according to their wishes.

   4. Handle Digital Assets. College students often have significant digital footprints (e.g., social media accounts, online subscriptions, and digital wallets). An estate plan can designate how these should be managed or accessed.

   5. Avoid Probate Hassles. Without proper planning, a child's estate may need to go through probate, even if they have few assets. This can delay access to funds and add unnecessary stress to an already difficult time, especially if it has to be done in a different state.

   6. Ensure Tuition Payments and Student Loans Are Addressed. Some parents may be cosigners on student loans or responsible for tuition payments. An estate plan can outline how these obligations should be managed.

   7. Protect and Manage Health Care Choices. Advance directives, such as a living will, ensure that the child's health care preferences are known and respected if they cannot communicate them.

   8. Ease of Travel Emergencies. College students often travel for school, vacations, or study abroad. An estate plan provides parents with the legal authority to step in during emergencies, such as accidents overseas.

   9. Proactive Financial Education. Creating an estate plan encourages young adults to understand the importance of financial and legal planning early in life.

   10. Address Privacy Concerns. Without proper authorization, parents may be unable to access academic, medical, or financial records due to privacy laws. An estate plan bridges this gap.

   11. Peace of Mind for Parents and Students. Knowing there’s a plan in place for emergencies helps parents and students focus on their goals and responsibilities without worrying about the unknown.

   12. Protect Beneficiaries of Life Insurance or Savings Accounts. If the child is a beneficiary of any accounts or policies, an estate plan ensures the proper handling of these assets in the event of the child's passing.

What Can Happen If They Don't Have One

Without the right documents in place, you could face:

• • Medical Roadblocks: HIPAA laws prevent doctors from sharing information unless authorized. You may also have difficulty authorizing treatment for that child.
  • Financial Barriers: Managing your child’s finances in emergencies could be impossible without a durable power of attorney.
  • Costly Delays: If the unexpected happens, settling even a small estate can mean court battles and probate costs, perhaps in a state a great distance from yours.

A customized estate plan eliminates these risks and gives you the peace of mind that you can act when your child needs you most.

What’s Included in Your College Student Estate Plan?

I provide the necessary documents for your child to make sure that you can be there for them when they need you most! Those documents are:

• • HIPAA Authorization: Access your child’s medical records in emergencies.
  • Medical Power of Attorney: Make critical health care decisions if your child can’t.
  • Durable Power of Attorney: Handle financial matters without unnecessary red tape.
  • Tailored Guidance: Ensure their wishes—and your rights—are protected.

Act Now: Protect Your Child Before They Leave

Emergencies don’t wait. Whether it’s a health crisis, an accident, or a financial issue, waiting to create an estate plan puts your family at risk of unnecessary stress and costs. If you are in the Burlington, Camden, Gloucester, Salem or Cumberland County area, take the first step now before something happens! Click here to schedule an initial call to discuss your needs.

Want more information? Then download my free book, A Guide to Creating Your Estate Plan. It will get you a long way towards achieving that goal.

Related Topics

If you liked this information and found it useful, then you might like or need these others:

• • What is an Advance Medical Directive?
  • What is a Durable Power of Attorney?