By Andrew Bellm
Sending a child off to college is an exciting milestone, but it also introduces new considerations for parents when it comes to estate planning. Beyond tuition payments and dorm room preparations, parents should think carefully about legal and financial protections for their young adult, especially since many children are leaving home and gaining independence for the first time.
Health Care and Medical Decisions
Even though your child is legally an adult once they turn 18, parents may still want to maintain access to information and decision-making authority in case of emergencies. An adult student can execute a healthcare power of attorney or medical authorization form that grants parents the ability to make medical decisions if the student is incapacitated.
Financial Access and Banking
College students often open their own bank accounts or obtain credit cards, which can complicate parental access to funds. An adult student may execute a financial power of attorney that grants the parents the ability to make financial decisions for the student so the parent can act on the child’s behalf.
Parents may consider establishing joint accounts or adding themselves as authorized users on certain accounts for emergencies.
Guardianship and Legal Protections
While most parents assume guardianship ends when a child turns 18, there are still ways to plan for situations in which the young adult might require support. For example, if a student has special needs or faces health challenges, guardianship or conservatorship documents may still be relevant. Estate planning tools like trusts can also provide ongoing financial support while preserving the student’s independence.
Insurance and Liability Considerations
College introduces new risks, from dorm accidents to travel emergencies. Parents should review health insurance coverage, ensure the student is protected under their own or family plan, and consider additional coverage such as renter’s insurance for dorms or apartments. Liability insurance, including umbrella policies, can also be critical if the student lives off-campus or drives regularly.
Planning for Unexpected Events
No one likes to think about worst-case scenarios, but college students are at a stage of life where accidents and emergencies can happen. Estate planning documents, such as wills or beneficiary designations on life insurance or retirement accounts, should be reviewed and updated. Ensuring that beneficiaries are current and that financial and medical instructions are clear can prevent confusion and delays during stressful situations.
Maintaining Communication
Finally, one of the simplest but most important steps is communication. Parents and students should discuss financial, medical, and legal arrangements openly. Understanding each other’s expectations and limitations will make it easier to navigate emergencies and ensure that the student’s independence is balanced with safety and parental support.
Sending a child to college is an opportunity to review and update your estate planning, ensuring that your young adult is protected while gaining the independence they need to thrive. By addressing healthcare decisions, financial access, legal protections, and insurance coverage, parents can help their students succeed confidently and safely.