We care for our children from the moment their born. We change their diapers, feed them, teach them and try to keep them safe. We make decisions on their behalf for their well-being and safety. That’s what parents do.
What happens when they turn eighteen? Whether they are off to college or pursuing something else in life, legally you are no longer permitted to make those important decisions for your child.
Your child is an adult in the eyes of the law, capable of making all legal, financial, and health care decisions. The Law Offices of Hoyt & Bryan can help you help your child make these important decisions.
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What happens when a child turns 18?
When your child turns 18 years of age, he or she is a bona-fide adult. This means that Mom or Dad cannot step in and make medical, legal, or financial decisions for their adult children.
In order to protect yourself and your child, your 18 year old should put some important decisions in writing.
First, who will make your child’s financial decisions if they are unable to do so? A Financial Durable Power of Attorney will carry out those decisions. Second, who should make health-care decisions if your child is unable to do so for themselves? This can be accomplished by establishing a Health Care Power of Attorney. This document allows your child to nominate who should make medical decisions for them in the event they are unable to do so. How does your child want to be cared for if they are in a permanent vegetative state or terminally ill? A Living Will states your wishes for end of life decisions including life support. An Anatomical Gift will allow your child to decide if they would like to be an organ donor or not. These decisions amongst others, are important.
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“Kids in College” Planning
Options package includes:
♦ Financial General Durable
♦ Power of Attorney
♦ Health Care Power of Attorney
♦ Living Will
♦ Anatomical Gift
Package Price—$275.00
* $250.00 for additional children
Additions to the Package:
♦ Last Will
♦ Preneed Guardian
♦ Tangible Personal Property
♦ Memorial Instructions
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Something to think about...
Health Insurance
Does your child have insurance? If not, insuring them protects you, because you’re not likely to let them go untreated if they are seriously ill. Typically dependent children can stay on your health insurance policy until 18 or 19 and up to 23 if they are in school full time. Check with your health care provider for more information.
Auto Insurance
Is your child still on your family auto insurance policy? That’s the cheapest way to get coverage. Your premiums may drop if they are away at school and drive your car only during vacations.
If they have their own car, it should be titled in their name and they should have their own policy, even if you have to give them the money. It costs more this way, but it might save you from a huge liability judgment if they cause a tragic accident. Make sure that your child's liability protection is as high as yours.
Trust Funds
Is your child going to be receiving an inheritance? Maybe this is a good time to introduce them to your estate planning
attorney, CPA, or financial advisor, so they can explore their options and become more educated about finances. It is never too early to start educating your children about money and estate matters.
Co-Signing a Loan
If your child asks you to co-sign on a loan, maybe your child is reaching for more credit that they can afford. If they pay late, it will affect your credit rating along with theirs. Never sign a loan that you can’t cover yourself. Even a reliable child might lose their job, or forget to make a payment. If you do decide to sign, keep track of the payments by getting a copy of your child's monthly statements.
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