There’s an aspect of financial planning that’s frequently overlooked when a family is sending a child off to college: the importance of having a Power of Attorney (POA) and Health Directive in place.

When your child turns 18, they are legally considered an adult, which means you no longer have the automatic right to make decisions on their behalf—even if they’re still financially dependent on you and living in a college dorm. This shift can have significant implications, particularly in times of emergency.

The Role of a Power of Attorney

A Power of Attorney (POA) is a legal document that grants someone the authority to act on another person’s behalf in legal and financial matters. For college students, having a POA in place means that if they’re unable to manage their own affairs—due to being abroad, incapacitated, or otherwise unavailable—you can step in and handle matters such as paying bills, managing bank accounts, or dealing with the college administration on their behalf.

Without a POA, you may find yourself in a situation where you’re unable to assist your child during a critical moment, causing unnecessary stress and complications. A POA ensures that someone trusted is in place to manage these responsibilities seamlessly.

Why a Health Directive is Essential

A Health Directive, or Advance Health Care Directive, is another crucial document for new college students. This legal tool outlines an individual’s preferences regarding medical treatment and appoints a healthcare proxy—someone who can make medical decisions on their behalf if they’re unable to do so.

Imagine a scenario where your child is hospitalized and unable to communicate their wishes. Without a Health Directive, you may not have the legal right to make decisions about their care, which could delay treatment or lead to choices that don’t align with their preferences.

A Health Directive not only ensures that your child’s healthcare wishes are respected, but it also provides peace of mind, knowing that there is a clear plan in place should an emergency arise.

Peace of Mind During a Major Life Transition

College is a major life transition, not just for students but for their families as well. Planning tools—like a POA and Health Directive—can alleviate the stress and uncertainty that come with this new chapter. These documents are about more than just legalities; they’re about ensuring that your child is protected and that you, as a parent, have the ability to support them in any situation.

Before your child heads off to college, take the time to put these essential documents in place. It’s a small step that can make a world of difference, providing security and peace of mind during this exciting yet unpredictable time in their life.

If you’re unsure of how to get started, consulting with a legal professional or wealth strategist can help you navigate the process and ensure that your family is fully prepared for the road ahead