Question:  

Our daughter is starting her first year in college. What conversations should we have with her, and what documents do we need to have in place before she goes to school?

Answer: 

As always, summer flew by and it’s back to school. This is an exciting and sometimes bittersweet time of transition. During July, our family had the opportunity to visit several Florida colleges with our granddaughter. She’ll be a senior in high school this year and turning eighteen in a few months. The time spent together was a gift as we discussed her future dreams and the rights of passage she’ll face. 

The foundation for moral and financial values is set long before our children head off to college. One important consideration is that under most state laws, children are no longer considered minors when they turn 18 years old. At that age, they assume all control over their actions and decisions, and parents are relieved of all their legal responsibilities to them. 

This doesn’t necessarily mean that parents will cut their 18-year-old loose and stop paying for the child’s expenses. It does mean that parents will no longer be privy to the child’s personal information unless that child first provides the parents with permission to see and access that information.

Rather than being left in the dark if your child becomes ill and/or unable to manage their medical care or finances, parents should seek the guidance of professional advisors to ensure they have the following documentation in place. 

HIPAA Authorization and Healthcare Power of Attorney

In order to speak with your child’s doctor about his or her medical condition or care, you must have the child sign a blanket HIPAA authorization allowing you to do so. Without this form, you won’t have a right to receive information about their care, even if he or she is hospitalized and unable to communicate directly with you. Instead, all information about your child’s medical care will be left in the hands of the hospital or physician providing care. In addition, check with your child’s college to see if they have their own requirements for releasing students’ medical information. They may have their own forms you will need to complete. 

For you to have authority to make medical decisions on your child’s behalf, you must also have in place a signed healthcare power of attorney, also known as a healthcare proxy. This is especially important if your child becomes physically or mentally unable to make decisions on their own. No one wants to think about worst-case scenarios, but the reality is that they do happen, and it’s better to be prepared.

Along the same lines, although awkward, you may want to consider discussing end-of-life decisions and drafting living wills to spell out decisions regarding the kind of healthcare college-age children want or do not want in the event they become incapacitated. Copies of all HIPAA authorizations, medical release forms and healthcare proxies for both your state and the state where your child is living should be kept by both you and your child. This will expedite your ability to respond to unanticipated events. 

Financial Power of Attorney

For many young adults, the transition to college represents the first time they will manage their finances and live within a well-defined budget. In addition to college tuition and fees, students may be responsible for monthly rent, utilities, car insurance premiums and credit cards. Missing just one payment can put a significant dent in your child’s credit, and a habit of nonpayment can lead to far more profound consequences. For these reasons alone, it is important for parents to execute a financial power of attorney allowing them to access their children’s financial information and step in, as needed, to prevent temporary issues from turning into a larger problem. A financial power of attorney allows parents to sign for and make financial decisions about assets such as cars and bank accounts in the event a child becomes physically or mentally unable to make decisions or if they were to be out of the country studying abroad.

Sending a child off to college is a right of passage, signifying your child’s first taste of true independence and the transition into adulthood. Advance planning under the guidance of parents and professional advisors can help prepare parents and children for future uncertainty. Stay focused and plan accordingly.