Estate Planning for College Students During the COVID-19 Pandemic? You Bet!
With college students back on campus throughout the U.S. and new coronavirus clusters being found in dorms, off-campus housing, fraternities and sororities it has become increasingly imperative for parents of college students to make sure their students have certain estate planning documents.
As long as your student if over the age of 18, they are legally able to sign documents for themselves. So, your student is off at college and you are thinking, “okay, my child should have documents, but what do they really need?” Generally, there are three documents that you child might need while in school:
1. A Durable Power of Attorney;
2. A Designation of Patient Advocate;
3. HIPAA Authorization
Durable Power of Attorney
A Durable Power of Attorney, is the financial arm of estate planning. This document allows for the designated agent, typically the parent, to manage and act on their child’s behalf for all financial related purposes. The Power of Attorney is considered to be “Durable” because it goes into effect on the signing of the document and remains in effect until the child revokes the power. The other kind of Power of Attorney is what is known as a “Springing” power because the power “springs” into effect at a certain triggering point.
While active an Attorney-in-Fact or Agent can access bank accounts, credit cards, establish retirement accounts and trusts and other financial instruments on behalf of the individual. It is important to note, however, that this power isn’t unlimited because all Agent’s are bound by what is known as a “fiduciary responsibility.” As the named person to act on behalf of another person, a fiduciary has a heightened level of responsibility to act in the best interest of that person. Failing to do so could open the named Agent up to potential lawsuits by the individual. So Parents beware!
Designation of Patient Advocate
The next document that all college students should have is a Designation of Patient Advocate. As the name implies (duh) a Designation of Patient Advocate is choosing an individual who can make certain medical decisions for the patient in the event the patient is incapacitated. In Michigan, a Patient Advocate is not effective until the patient advocate is deemed ineligible to make medical decisions on their own by their doctor. While a determination of incapacitation can sometimes be changed within the Patient Advocate document, the law is clear that a patient advocate cannot act in any other situation other than incapacitation.
Health Insurance Privacy Authorization Act
The final document a college student should have while away at school is a HIPAA Authorization.
Going off to college is a big step for any high school graduate. While there are a lot of worries that parents think about when they send their child off to school, what should happen and who can help make decisions should not be one of those worries. By having your attorney draft essential estate planning documents for their child, parents can have peace of mind that their child will be in good hands.
How I can help
As an estate planning lawyer, I have worked with multiple parents and families on providing tailored estate planning strategies to maximize generational wealth transfers, avoid probate, and protect your assets.
If you are ready to learn more about estate planning and how I can help you and your college age children schedule a free consult with me today by calling my office at 248-522-6272.
Areas I serve
Royal Oak
Bloomfield Hills
West Bloomfield
