Graduation season is here — a time of pride, celebration, and looking ahead. As young adults step into their futures, there is an important milestone many families overlook: estate planning.
It may seem early to think about wills and legal documents, but once a child turns 18, parents no longer have automatic authority to make medical or financial decisions for them. Without a few simple documents, families can face significant challenges during an emergency.
Here are the essential estate planning steps every young adult should consider:
1. Medical Power of Attorney
A Medical Power of Attoreny appoints someone — typically a parent or trusted adult — to make medical decisions if the young adult is unable to do so. Without it, doctors may be restricted in sharing information due to privacy laws like HIPAA.
2. Durable Power of Attorney
A durable power of attorney authorizes someone to manage financial matters, such as paying bills or accessing bank accounts, if needed. This becomes crucial if a student is studying abroad, traveling, or faces a medical emergency.
3. HIPAA Authorization
A standalone HIPAA release form allows health care providers to disclose medical information to designated individuals. This form ensures that parents or guardians can get updates even if no decisions need to be made.
4. Basic Will
While many young adults have minimal assets, a simple will can designate who would receive personal belongings, financial accounts, or even digital assets. It also allows them to name an executor — someone they trust to manage their affairs.
5. Digital Asset Planning
From email accounts to social media profiles, young adults today have an extensive online presence. Planning for digital assets helps loved ones access or properly manage these accounts if necessary.
Starting Estate Planning Early Builds Good Habits
Introducing young adults to these documents does more than just protect them — it teaches responsibility, empowers them to make important decisions, and sets the foundation for smart financial and legal planning throughout their lives.
Congratulations to all the graduates and their families! As you celebrate their achievements, consider giving the gift of protection and peace of mind. Estate planning is a crucial step toward a secure, successful future.
