Eighteen: The Magic Number?

Compliments of Our Law Firm,
Written By: The American Academy of Estate Planning Attorneys

Ask the parent of an eighteen-year-old whether their child is an adult, andyou’re likely to get a wry smile. Eighteen-year-olds like to think of themselvesas adults, but parents tend to look at their young adult offspring and see…teenagers.

Legally speaking, however, your child’s eighteenth birthday is a huge milestone.This is when your child reaches the age of majority in most states, and magically– literally overnight – transforms from a child into an adult. You might look atyour eighteen-year-old and see an average teenager, but the state sees a grownup.In the eyes of the government, your child is capable of registering to vote,managing their own money and other assets, and taking charge of their owndecision-making – whether you agree with those decisions or not.

As of this birthday, you are no longer automatically empowered to make decisionson your child’s behalf. In addition, you have no automatic right to access yourchild’s medical records or financial accounts, and you cannot step in and takecontrol of your child’s property.

Being the parent of an eighteen-year-old can present a number of practicalchallenges, particularly if your child goes to an out-of-state college or takes agap year to travel abroad. Here’s an example:

Your daughter spends the summer doing volunteer work in South America. Whileshe’s away, the student apartment she’s had her eye on becomes available. Thelease needs to be signed right away, but she is out of the country and there’s noway to get her signature. Does she have to miss out on the apartment she wants somuch?

With good planning, you can be in a position to help. Your estate planningattorney can help you and your child put together a simple set of documents thatwill make life a little more convenient for both of you and will allow you tostep in if there is an emergency. Here’s what each document does:

• Durable Financial Power of Attorney: With a Durable Financial Power ofAttorney, your child appoints you as their “agent” and gives you the authority tomanage their money or property under certain defined circumstances. This is thedocument that, if appropriately drafted, can allow you to sign a lease on behalfof your child.
• Healthcare Power of Attorney: This document allows your child to appoint youto make medical decisions on their behalf if your child is unable to make thosedecisions. Without a healthcare power of attorney, if your eighteen-year-old isseriously injured or gravely ill, there is no requirement for the doctors toallow you to participate in the medical decision-making process.
• HIPAA Authorization Form: Under the federal Health Insurance Portability andAccountability Act, medical providers must be extremely cautious about theunauthorized release of their patients’ information. Once your child turnseighteen, doctors are prohibited by law from sharing their medical informationwith you – unless your child has given them express consent to do so. The HIPAAAuthorization Form allows you access to your child’s medical records, whether youneed a copy of their vaccination record for college enrollment or you need toaddress a more serious health concern.

At eighteen, your child is likely ready to branch out and start exploring theworld. However, this doesn’t mean they’re ready to leave the nest without helpfrom you. With a little planning, you can be there for your young adult as theymake the next steps toward independence.