Do you were children need estate planning documents? If your child is 18 or older, they are technically in adult. Which means you no longer have the legal right to make medical decisions for them, access their medical records, or handle their financial matters. Consider the implications not having the ability to make medical decisions for your child in the case of emergency or if your child becomes incapacitated.
Some families have found themselves unable to help their children after such event as car accidents, natural disasters, and other unforeseen emergencies. While the doctors treating your child may share with you, your child’s condition and seek your input with respect to a course of treatment; they are technically prohibited by law from doing so without proper documents signed buy your adult child or a court appointing you as your child’s conservator. Additionally, the insurance companies and hospital staff or similarly prohibited from sharing information about your child, and often are not as accommodating or compassionate as doctors maybe. This means you may find the to get the medical records and insurance coverage information during a time of need.
Planning to head is critical to avoiding such situations and go a long way to help alleviate stress should a family crisis arise. Castle Wealth Advisors, LLC, recommends speaking with your financial planner and estate planning attorney to discuss the potential issues and risks associated with you adult child not having proper estate planning documents. Documents to consider are:
- Power of attorney: Preferably a “Springing” Power of attorney. Since a springing power of attorney becomes effective in the event of incapacitation. This is in contrast to a durable power of attorney, which is effective upon make decisions on your behalf.
- Health care power of attorney: A health care power of attorney is a legal document in which you designate someone to be your representative, or agent, in the event you are I’m capacitated and unable to communicate decisions about all aspects of your healthcare.
- Advance directive: is similar to a healthcare power of attorney, where are are you are able to outline your wishes regarding medical and life-sustaining care should you become incapacitated. Most advance directives allow you to choose someone you trust to make those decisions on your behalf if you are unable to do so.
- Will or Trust: If your adult significant assets it maybe advisable for them to establish a will or trust. Where they would plan the transfer of those assets should death occur.
Should your child need these documents, an estate-planning attorney can work with them to prepare the needed documents which would give you the ability to make financial decisions, request otherwise confidential medical information, and/or make medical decisions in the event of emergency or if your adult child becomes incapacitated.
Some colleges and universities use pre-printed forms. However these forms are not always appropriate or comprehensive enough to cover all circumstances. And should be disucssed with an estate-planning attorney. Additionally, if there is a bank or investment account that you control depending on the type of account, you may be required to distribute those assets to the adult. If these are significant, your adult child should consider creating and estate plan to dispose of their assets in the event of death.
Working with professionals to help educate your child/ children about financial matters can help them to become more confident adults as well as alleviate any potentially unpleasant/ stressful situations should your adult child be in an accident or become incapacitated. A Certified Financial Planner™ can be a great resource to to help teach your child about both their finances (now and in the future) and can discuss how their financial plans and estate plans work together.
This information is general in nature and may be subject to change. Financial professionals and other representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant.
Securities offered through NMS Capital Advisors, LLC, Member FINRA/SIPC. Advisory products and services offered through Castle Wealth Advisors, LLC, a Registered Investment Advisor. NMS Capital Advisors, LLC and Castle Wealth Advisors, LLC are unaffiliated entities.