Starting college is one of life’s biggest milestones, and the excitement can make it easy to lose sight of other important details—like estate planning. While estate planning might seem more relevant for older adults, this process is just as important for college-aged children.
These documents guarantee that a student’s parent (or chosen individual) can make major financial, medical, or legal decisions if the student can’t do so themselves. Without them in place, trying to navigate an emergency can be heart-wrenching—to say the least.
Keep reading to understand the top five estate planning documents college-aged children need, and how they protect a student’s future.
Key Takeaways
- Certain estate planning documents help protect a college student’s medical, financial, and educational interests
- These documents empower a parent or designated individuals to make decisions on behalf of college students during emergencies
- Power of attorney, healthcare directives, and digital estate planning are particularly critical for young adults
- Ultimately, estate planning for college-aged students is the best way to ensure their wishes are respected
1. Healthcare Directive
A healthcare directive for young adults is a legal document that lists preferences and instructions for medical care in the event they’re unable to communicate their wishes.
Unfortunately, the unforeseen can happen at any time. No matter how well you know your child, making medical decisions on their behalf can be incredibly stressful. Your child can update their healthcare directive anytime if their health needs change.
Key components of a healthcare directive for college students are their medical treatment preferences and choice of decision-maker. Their parents or trusted individuals should have their own copies.
2. HIPAA Release Form
Under theHIPAA Privacy Rule, an individual’s health information—such as medical records, billing information, prescriptions, and diagnoses—legally must stay between you and your doctor. In most situations, this is a good thing: no one can find out about your health without your consent.
But what if your child is in a position where they’re unable to voice their consent?
This is where a HIPAA release form comes in. This document allows healthcare providers to share medical details with designated individuals, such as parents, so they can stay informed during emergencies.
As a parent, this means you’ll always be updated on your child's medical condition—especially if they live far away.
3. Power of Attorney
A power of attorney (POA) grants someone the authority to manage financial or legal matters on behalf of a college student. This is critical in cases where the student is unable to handle tasks like paying bills, managing bank accounts, or signing documents.
It’s wise for college students to consider both financial power of attorney and general power of attorney:
- Financial Power of Attorney - Empowers a trusted individual to manage financial accounts and transactions
- General Power of Attorney - Can cover a wider range of decisions beyond finances
By having a POA in place, parents or trusted adults can step in without unnecessary delays and avoid potential financial consequences the student would otherwise face.
4. FERPA Waiver
Under the Family Educational Rights and Privacy Act (FERPA), parents can't access their child's educational records without permission. A FERPA waiver allows parents to discuss grades, transcripts, or disciplinary actions directly with the college.
This can be vital for students who rely on their parents for financial or academic support and need them to act on their behalf in certain situations.
In the waiver, be sure to cover what permissions are granted regarding academic records. This document can prove invaluable during emergencies, academic interventions, or even just routine financial aid discussions.
5. Living Will
A living will outlines a college student’s preferences for end-of-life care if they’re incapacitated and unable to communicate their wishes.
This is, of course, uncomfortable to consider, but this document helps avoid confusion and painful conflict among family members. College students can specify which treatments they want or don't want, which can offer some peace of mind during a very difficult time.
Estate Planning is Important for Everyone, Even College Students
You aren’t alone if you typically associate estate planning with older adults and retirement. But in reality, college-aged children should seriously consider these documents in order to protect their future.
From medical emergencies to financial decisions, having a solid estate plan in place means the right people can quickly act on a student’s behalf. Students should discuss their options with their parents early on.
Most importantly, consult with professionals throughout the process to make sure the paperwork is legally binding. The last thing you want is for the documents not to hold up during a critical moment.
For more information about estate planning for college students, contact our financial planners atAsset Advisory Services today.
FAQs About Estate Planning for College Students
What estate planning documents should a college-aged student have?
The estate planning documents a college-aged student should have include:
- A healthcare directive
- Power of attorney
- FERPA waiver
- HIPAA release
- A living will
Having these five documents in place guarantees a college student’s wishes are respected—not just in medical matters, but in financial matters too.
What happens if a college student doesn’t have estate planning documents?
If a college student doesn’t have estate planning documents, their parents or guardians will almost certainly face legal barriers when they have to make an important medical, financial, or academic decision in their stead.
This can be a nightmare scenario during emergencies when important actions are urgent.
How can estate planning help in an emergency for a college student?
During an emergency, estate planning can help a college student by guaranteeing a trusted individual of their choosing can quickly make decisions—whether it’s accessing medical records, managing finances, or handling legal matters.
In medical emergencies, these documents can make all the difference in the world. Though it might sound like an extreme example, estate planning for college students can be truly life-changing.
Asset Advisory Services does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.