We have mentioned this countless times, including at seminars and in previous articles, but it bears repeating: You and your loved ones are never “too young” for estate planning. I get it; pick up any brochure about Wills or Trusts, and you will likely see an older person on the cover. That said, estate planning is NOT exclusively for people over 65 or those with significant wealth. It never has been—it is for anyone, regardless of whether we are talking about people who are 65, 32, 44, 26, or young adults who recently turned 18.

Alas, young adults, in particular, still believe the conversation does not apply to them. Granted, they have plenty on their plate and a lot to look forward to—increased independence, moving away from home, college, financial and healthcare decisions, and more. They also have an overriding sense of invulnerability. Sadly, none of us will live forever. Also, they are considered adults in the eyes of the law.

For those two reasons alone, young adults should start thinking about having several documents in place to protect themselves, address the possibility of an untimely death or medical incapacitation, and preserve their family’s access to information. 

Young Adults Automatically Benefit From Increased Privacy

Once a minor reaches 18, they are considered a young adult with the same rights, privileges, and obligations as any other legal adult. This includes benefiting from increased privacy protection and the ability to make decisions for themselves. While this sounds great on paper, especially for a young adult craving independence, it is important to remember that when they need help, their parents or legal guardian no longer have the automatic right to intervene, make decisions, or have access to the following information: 

• Medical records and healthcare decision-making
• Educational records (grades, transcripts, disciplinary statements, etc.)
• Financial records (bank accounts, tax information, bills, etc.)
• Contract signing

Everything could be going great, but then the unthinkable happens: They get into an accident and are taken to the hospital unconscious. Common sense says most young adults want their parents’ help in a medical emergency. And the parents would not hesitate to hop in their car and drive all night to be with their baby. All too often, our clients share horror stories of young adults getting injured and being unconscious, and the hospital staff does not know how to contact the parents.

Even worse, they reach the family but, by law, cannot discuss the patient’s medical information due to privacy laws.

These 4 Estate Planning Documents Are Essential for Young Adults

1. HIPAA Release Authorization forms — Under the privacy laws of the Health Insurance Portability and Accountability Act (HIPAA), medical personnel can go to jail or pay huge fines if they release a patient’s information without permission. An Authorization for Release of Medical Information or HIPAA authorization allows you to specify who can access a young adult’s private medical information. This allows for a continued free flow of otherwise protected information between doctors and parents or guardians. 
2. Living Will or Advanced Healthcare Directives — When making advanced healthcare decisions known, two crucial estate planning documents are a Directive to Physicians and a Do Not Resuscitate (DNR). In each instance, the document carefully expresses the young adult’s wishes should they become medically incapacitated, so there should not be any questions moving forward regarding care. With that said, each option should be carefully weighed and discussed with your family beforehand.
3. Medical Power of Attorney — This document allows young adults to appoint someone to make medical decisions, such as a parent, guardian, sibling, or someone else. Perhaps they become too ill or incompetent to make decisions for themselves. If this situation arises, it is nice to know these documents are in place to manage what happens next.
4. Durable Financial Power of Attorney — Similar to a Medical Power of Attorney, this important document allows young adults to appoint someone to make financial decisions in an emergency. This can include paying bills, viewing tax returns, and more.
5. FERPA Waivers — The federal Family Educational Rights and Privacy Act (FERPA) protects the privacy of student records. Many young adults still in school may consider signing one of these documents, which are available through the university. 
6. Wills — Even at 18, young adults should plan for incapacity or death. This is true regardless of the value of their estate or how young they are. Failing even to have a simple Will often results in a mess for the loved ones they may one day leave behind. Hopefully, that day is a long, long, long time from now. But you get my point. A Will is a specific set of instructions as to what should happen next if a young adult passes away. 

There is so much more to the estate planning conversations, including a variety of additional documents that can make a world of difference in protecting everyone you love and everything you own. Not all of these are important or necessary for young adults, but the ones mentioned above should be strongly considered as they embark on their next life adventure. 

Leigh Hilton PLLC Is Your Local Estate Planning Expert

When you have decided to discuss your estate planning needs for the first time, it is natural to wonder where you should start. The easy answer is to contact an estate planning attorney. After all, protecting everyone you love and everything you own requires proper guidance from someone who can help you make informed decisions and tailor a plan that covers you and your family’s needs from A to Z.

Call Leigh Hilton PLLC in Denton, and we will work with you to determine the best strategy for your unique situation. Proper planning of an estate helps ensure your wishes are honored. We always want to be your first call for any estate planning need. 

We look forward to serving you.