Estate Planning Documents for a College-Bound Child

Sending your child off to college is an exciting milestone. But it comes with important legal considerations. Once your child reaches age 18, they are legally an adult, and every bank, hospital, and school will treat them as one. Without the correct legal documents, you may find yourself unable to help if your college-age child is hurt in an accident or becomes seriously ill at school. Fortunately, with some planning right now, you can give your family peace of mind for whatever your child’s college years may bring.

Key Takeaways

• Once a child reaches their 18th birthday, they are adults in the eyes of the law. As a parent, you could face significant legal hurdles if you need to help your college-age student during an emergency.
• Foundational estate planning documents for college students clarify their wishes and can grant parents authority to access important records and act on their behalf.
• Legal requirements for estate planning documents vary between states. A qualified attorney can provide advice and prepare these documents for you.

Why Your College-Bound Student Needs an Estate Plan

One of the first legal issues parents of college-bound students must understand is that, as soon as your child reaches their 18th birthday, they are legally an adult. As parents, you no longer have legal rights over your child. You can no longer legally view your child’s medical or financial records, and you could face significant hurdles if you need to help your college student during an emergency. Fortunately, by creating a basic estate plan for your college-bound student, you will be in a better position to help them navigate new and uncertain situations.

Foundational Estate Planning Documents When a Child Leaves for College

An estate plan for college students includes four primary documents.

Last Will and Testament

Even though your college student is in their teens or early 20s, it is not too early to draw up a Will. The Last Will and Testament identifies an estate executor who will be responsible for managing the estate and outlines how assets will be distributed after death.

Power of Attorney

A Power of Attorney appoints another individual, most likely you or your spouse, to make legal and financial decisions on your child’s behalf, such as when they are unavailable or if they should become incapacitated.

Healthcare Power of Attorney and Living Will

A Healthcare Power of Attorney allows your child to designate another individual to make medical decisions on their behalf if the child is unable to make decisions for themself. A Living Will states their preference regarding extraordinary life-saving measures. Typically, a college student would appoint a parent to make these decisions.

FERPA Release

The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects a student’s privacy rights and restricts other individuals, including parents, from accessing their academic files. Many institutions have developed their own forms relating to the release of student academic records; however, a Power of Attorney and FERPA Release ensure a parent’s access to education records.

Does My College-Bound Child Need a Will?

The default rule in North Carolina is that a person’s assets transfer to their children first. For people who do not have children, assets transfer to their parents. If that would be the desired outcome in your situation, your college-bound student may not need a Will. However, having a Will is preferable because it makes clear who will be making decisions. This is particularly important in blended-family situations where the college-age student may want assets to go to a stepparent or siblings rather than a parent.

Manage Financial and Legal Matters for Your College-Bound Student

A Power of Attorney can authorize you to manage your child’s legal and financial matters when they are away at college or are otherwise unable to do so on their own. A Power of Attorney is particularly important if your child is studying abroad or becomes incapacitated.

Protect Your College-Age Student If They Are in the Hospital

If your child is hospitalized, a Healthcare Power of Attorney can grant you legal authority to access their medical records and make medical decisions on their behalf. Without this document, healthcare providers cannot legally share medical information with you due to medical privacy laws.

Do Legal Requirements Vary Between States?

Yes. Legal requirements do vary between states. If your child is attending college in another state, you may need to prepare legal documents for both your home state as well as the state where your child will be attending college. A qualified estate planning attorney can advise you on these requirements and help you prepare the required legal documents.

Comprehensive Estate Planning for North Carolina Families

The estate planning attorney team at Carolina Tax, Trusts & Estates, a Department of Van Camp, Meacham & Newman, PLLC, helps North Carolina families by creating customized estate plans that protect their financial future and well-being. Contact us today to schedule a confidential consultation to discuss your situation and how we can assist you.