Once children become legal adults, their parents no longer have the legal authority to make decisions on their behalf. While this might seem like an obvious fact, it has considerable implications in the context of estate planning. Although many parents and their adult children may hesitate to begin estate planning at such a young age, it is never too early to put their affairs in order. A few essential documents can give the entire family peace of mind. An adult child can easily amass a considerable fortune within a few short years of leaving home. They might also encounter medical issues – and their parents will have no authority to intervene in their treatment without proper estate planning documents. Parents may want to begin this discussion before their children leave home – and they can broach the topic alongside experienced Florida or Minnesota estate planning lawyers. Consider choosing Roulet Law Firm, P.A. For our Florida office, call (941) 909-4644. For our Minnesota office, call (763) 420-5087.
Why Does My Child Need an Estate Plan?
According to the National Institutes of Health, almost 60% of adults between the ages of 18 and 34 have at least one chronic health condition in the United States. Of those, over 22% have more than one chronic condition. The Population Reference Bureau also notes that young adults (especially men) are particularly vulnerable to major injuries and violence. According to Federal Reserve data, the average annual wage for people aged 25-34 is almost $85,000. All of these statistics highlight the need for estate planning at a relatively young age.
Health issues among young people are more common than many people realize. The average young man engages in unthinkably dangerous activities – including extreme sports, fighting, and excessive drinking. Often, they combine these activities into one. Parents should also avoid underestimating the earning capacity of their young ones. Within a few short years, an 18-year-old could earn a six-figure salary, make smart investments, and become the wealthiest member of their family.
Medical Power of Attorney
One of the most essential documents to have in place before children leave home is a medical power of attorney. Once a child turns 18, their parent can no longer make medical decisions on their behalf. Parents may have grown accustomed to playing a central role in healthcare planning, but this all changes when the child becomes a legal adult. In order to maintain this level of control over healthcare decisions, a parent may consider a medical power of attorney. Note that the adult child must sign this document without duress or misrepresentation, and this should be a collaborative process between the child, the parent, and an experienced estate planning attorney in Minnesota or Florida.
A medical power of attorney is a document that identifies an “agent” with the legal authority to make medical decisions on behalf of someone after they become incapacitated. This agent can do things like remove a patient from life support or refuse treatments on religious grounds. For example, an adult child may suffer a serious brain injury in a car accident. With a valid medical power of attorney, the parent could make the final decision on whether to try a risky brain surgery. Roulet Law Firm, P.A. may be able to explain medical powers of attorney in more detail.
Durable Financial Power of Attorney
A durable financial power of attorney is another essential document that parents may consider before their children leave home. Like a medical power of attorney, this estate planning tool identifies an agent to act on behalf of the child if they ever become incapacitated. However, a durable financial power of attorney only grants the agent authority over financial decisions. This could prove useful in several scenarios.
First, the adult child may quickly establish a business after leaving home. Perhaps they will become social media influencers. Maybe they will start an e-commerce business. Whatever the case may be, a parent can use a financial power of attorney to keep the business operational while the adult child is incapacitated. If or when they recover, the adult child will find their business in good standing – and they can continue with their entrepreneurial career in a seamless manner. There are all kinds of stories of people in their early 20s earning millions of dollars in an incredibly short time frame – particularly in the world of cryptocurrency. If a child earns considerable sums through various investments, parents may need to manage their holdings through medical emergencies. Perhaps most notably, it may be necessary to liquidate some of these holdings in order to pay for urgent and expensive medical treatments.
Living Will
An adult child does not necessarily need to select an agent to make important healthcare decisions on their behalf. They may also make their own decisions ahead of time with an estate planning tool called a “living will.” In this document, the adult child can state whether they want their body or organs donated to science or medicine. They might also decide whether they wish to be removed from life support if they fall into a vegetative state. Alternatively, they may state that they wish to remain on life support only for a set amount of time.
This could prove to be one of the most essential documents to create before children leave home, as it frees the family from difficult decisions. While powers of attorney shift decision-making authority onto the parents (or another family member), living wills absolve loved ones of this responsibility. Even if parents believe they are doing the right thing, they may feel a lingering sense of guilt after making certain medical decisions. An adult child can help families avoid this stress with a living will – ensuring that no one wonders whether they made the right decision.
Contact the Experienced Estate Planning Attorney at Roulet Law Firm, P.A.
Parents who wish to explore estate planning options before children leave home may contact Roulet Law Firm, P.A. Experienced Minnesota and Florida estate planning lawyers may be able to help people of all ages – even 18-year-olds. That being said, the most appropriate estate plans target the unique factors surrounding each family. As a result, internet research may only provide vague answers – and further guidance could be necessary. A consultation with an estate planning lawyer may give families the chance to discuss their specific concerns and challenges. Of course, adult children may also participate in these discussions – leading to a sense of understanding for the entire family. To begin this important discussion, consider calling our Florida office at (941) 909-4644. Minnesota residents may call (763) 420-5087. Or you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
Or, if you are not yet ready to schedule a consultation and would like to learn more about estate planning, sign up for my masterclass where I reveal how to avoid probate, wills v. trusts, how to save on taxes, how to protect the money you leave for your kids in the event they get divorced, and much more. Click here to join us.
