How Your Student Can Start Planning for Their Future

Sending your child off to college is an emotional milestone, marking their first significant step toward independence and adulthood. Preparing them for independent life is crucial to ensuring they have the necessary estate planning documents and financial knowledge as they start this new chapter.

 

While estate planning might seem like a topic for older adults, it is just as important for young adults. Proper planning helps protect their future and provides peace of mind for you as a parent. Addressing critical documents and teaching financial responsibility, you can help your child transition smoothly into adulthood and avoid potential legal and financial complications.

 

3 Essential Estate Planning Documents That Every College Student Needs

 

As your child turns 18, they gain control over their own medical and financial decisions, which means you’ll no longer have automatic access to this information. Before you send them off to college, it’s important to ensure they have the essential documents prepared.

1. 1. 1. Durable Power of Attorney: A durable power of attorney allows your child to designate someone to handle their legal and financial matters. This includes managing bills, leases, utilities, and other financial responsibilities, ensuring their matters are managed if they cannot do so themselves.
      2. Living Will: A living will allows your child to specify their medical care wishes in the event of a terminal condition. This document outlines their preferences for end-of-life treatment, providing clear instructions on the type of care they want if they become unable to communicate.
      3. Healthcare Directive Forms:
         • Medical Power of Attorney: This document allows your child to appoint a trusted individual to make medical decisions if they become incapacitated. It ensures the appointed person can make critical health decisions if they are unable to do so themselves.
         • FERPA Authorization: The Family Educational Rights and Privacy Act (FERPA) protects students’ educational records. This law allows parents to access important information about their child’s academic performance, tuition, housing, and other school-related matters.
         • HIPAA Authorization: The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of medical records. A HIPAA authorization gives you, as the parent or guardian, access to your child’s medical information, allowing you to make informed decisions about their healthcare in the case of an emergency. A HIPAA Authorization is frequently signed alongside a FERPA Authorization
         • Advance Directive for Healthcare: Often, the issues listed above can be combined into one document called a Healthcare Directive. This document provides comprehensive instructions for medical care, including who can make decisions and what treatments are desired in the event of a severe health condition or permanent unconsciousness.

 

Read more detailed information about these essential documents in this blog.

 

What Your Student Needs to Know About Financial Planning & Responsibility

 

Apart from the legal documents, preparing your child with essential financial skills and knowledge will help them confidently navigate their independence, setting them up for lifelong success.

• • • • Financial responsibility: College is the perfect time to teach them about budgeting, saving, investing, and avoiding debt. Prepare your child with financial knowledge to help them make informed decisions that will benefit them throughout life.
      • Avoid Common Pitfalls: Teach your child to manage money effectively to prevent falling into debt traps such as excessive credit card balances or overspending on non-essentials.
      • Build Good Financial Habits: Have your child prioritize spending and set financial goals to prepare them for a smoother transition into the professional world. Have them start by budgeting to cover tuition, housing, books, and savings.
      • Understand Student Loans: Help your child understand how to manage student loans wisely. Learning about interest rates and the effects of debt will allow them to make informed choices and minimize financial burdens after graduation.

For a more in-depth guide on teaching financial responsibility, explore our detailed blog.

 

Contact the Estate Planning Law Group of Georgia

Preparing your child for college involves more than packing their bags and saying goodbye. At the Estate Planning Law Group of Georgia, we’re here to guide you and your family through this essential transition. Reach out to our team by filling out the form below; together, we can ensure your child is well-prepared for their new journey ahead.