When individuals cross the threshold into adulthood, they begin a new chapter of life as young adults which includes a change in legal status. After a child turns 18, a parent does not automatically have the authority to access their child’s medical information, school records, manage finances, or make decisions for their child in emergency situations. A few simple estate planning strategies allow trusted loved ones to step in if the worst were to happen.
Basic Estate Planning Documents
A basic estate planning document suite includes an Advance Medical Directive (AMD), a Durable General Power of Attorney (DGPoA), and a Basic Will. Between these three documents, the young adult can choose who they would like to act for them if they are incapacitated or pass away and express their final wishes. If the young adult does not have these documents in place, it will be up to the court to appoint a medical or physical guardian, and up to intestate statutes to inform who will receive their assets. Preparing sound documents in advance lessens the need for court involvement.
When creating these, consult a legal professional about the validity of the documents, especially if the young adult is going to college outside of their home state. Different states can have slightly different requirements surrounding the nuances and execution of estate planning documents. Sometimes by adding a phrase, or by requiring both a notary and witnesses, you can strengthen the documents.
Asset Organization
Oftentimes, the most frustrating and easily preventable aspect of estate administration is getting an accurate list of all assets and liabilities a person has. This includes vehicles, bank accounts, retirement accounts, credit cards, student loans, etc. When someone makes a list of their assets and liabilities, it’s great help to their loved ones when they step in to manage their affairs or administer their estate. Instead of hunting through physical records attempting to leave no stone unturned, the asset list gives them a good place to start. We have developed an asset organizing form that can assist in the creation of such a list.
Since many young adults tend to keep electronic records (instead of physical records), digital assets are equally important. This includes email, social media, file storage such as Google Drive, etc. This is especially important because if access to an account is lost, it can be very difficult to obtain access. Companies such as Apple and Google in particular have extremely strict guidelines when it comes to releasing the passwords of deceased individuals. It can often be more difficult to get a password than to access the bank account of a deceased individual.
There are several ways to preserve access to digital assets. For the technologically inclined, a password management software may be a good option. In addition to naming someone who can access it in case of emergency, these softwares can provide additional security features. Depending on the company, some accounts offer a “Trusted Contact” or “Legacy Contact” option to name someone directly on the account who will only get access if the owner has passed away.
Emergency Information Packet
Once the young adult has created estate planning documents and created a listing of their assets and liabilities, they should organize it into a compact and accessible packet that can easily be referenced in case of emergency. For example, there are many affordable fire-resistant accordion folders sold online. This folder could comfortably hold the documents listed above as well as other important records such as birth certificates, social security cards, etc.
Additionally, it could be beneficial to create a small, laminated billfold card to carry in a wallet. This can include full name, date of birth, allergies, medical conditions, medications, emergency contacts, and more. This can assist paramedics in emergency situations.
While it is unpleasant to think about incapacity and death, a little preparation now can substantially help in case of an emergency. Instead of scrambling, a carefully thought-out plan can allow caregivers to spring into action. This can give young adults and their families greater peace of mind as they begin the next chapter of their lives.