Essential Estate Planning Documents Every 18-Year-Old Needs: Power of Attorney & More

Turning 18 is a major milestone- often marked by newfound independence, heading off to college, or starting a first job. While most young adults (and their parents) focus on things like course schedules and dorm room checklists, one critical step is often overlooked: establishing essential estate planning documents.

Once a person turns 18, parents lose access to medical information and are barred from making legal and financial decisions on behalf of their adult child. Emergencies, whether medical, legal, or financial can happen at any age. That’s why it’s so important for young adults to have a basic estate plan in place.

Top 3 Legal Documents Every Young Adult Need

Durable Power of Attorney

This document allows a trusted individual (often a parent or guardian) to handle financial matters on behalf of the young adult. This can include managing a bank account, signing a lease, or paying bills if the young person is incapacitated or simply unavailable.

Why it’s important: If a student is studying abroad or hospitalized, a durable power of attorney ensures someone can act in their best interest without court involvement.

Health Care Proxy

A health care proxy designates someone to make medical decisions if the young adult is unable to do so themselves. Without this, medical professionals may be limited in who they can speak to- even in an emergency.

Why it’s important: In a crisis, parents and loved ones may be left helpless without proper authority to act or even get information.

HIPAA Authorization

HIPAA laws protect the privacy of medical records. A signed HIPAA authorization allows healthcare providers to share information with the designated individual(s), such as parents, even if they’re not making decisions.

Why it’s important: Without this document, a hospital may legally refuse to share information or even confirm whether your child has even been admitted.

Additional Items to Consider for a Young Adult Estate Plan

Living Will
This document spells out a young adult’s preferences for end-of-life medical care, including resuscitation, life support, and organ donation. While it’s a difficult conversation, having clear directions in place in a will avoids leaving these heartbreaking decisions to loved ones.

Personal Property Memorandum
This isn’t just for wealthy individuals. A personal property memorandum allows a young adult to specify who should receive sentimental or valuable personal items (like jewelry, instruments, or electronics). It’s a simple way to reduce confusion or disputes among family or friends.

Digital Assets and Social Media Accounts
Today’s young adults often have significant digital footprints- social media accounts, email, cloud storage, even cryptocurrency. A digital asset plan allows them to decide who can access, manage, or delete these accounts if something happens.

Why it matters: Without instructions or passwords, families can struggle to gain access or shut down online accounts, sometimes facing long legal processes.

The Bottom Line
Estate planning is not just for older adults or those with significant wealth. It’s about making sure someone you trust, like a parent, has the legal authority to help an adult child when they need it most.

A few simple documents can save loved ones from unnecessary stress, expense, and legal red tape during an already difficult time.

If your child is heading off to college, studying abroad, or turning 18 soon, consider making these documents part of your checklist. It’s one of the most meaningful gifts of protection you can give.You are teaching them individual and legal responsibility.

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