Congratulations – you’ve turned 18!
You’re finally an ADULT! You made it.
BIG PLANS?
-Going off to college?
-Moving out of your parents’ house?
-Making your own rules and living your best life…
SCORE! Now you can now make all your own decisions …open a credit card … move out …do whatever you want (sort of). While all that may sound pretty awesome, it can also be problematic if you don’t take care of a few things first.
Whoever said “with great privilege comes great responsibility” was right.
Here are a few things you need to know now that you’re an adult:
#1. Being an adult is HARD. Harder than you might think.
#2. You WILLhave to pay off that credit card… every penny – and with interest (probably a lot of interest).
#3. Now that you’re 18, your parents (or legal guardian) can no longer make legal decisions for you. That’s right – no more discussing your health information with the doctor or dentist, no talking to the bank for you – you get the idea.
Have you thought about what will happen if you get into an accident and are unconscious making you unable to tell the doctor what kind of health care intervention or treatment you want (or don’t want)? Well, if your mom or dad can’t legally do it anymore…who will?
Up till now, your parents have probably managed all your medical care. They are accustomed to having access to all your medical records and you are accustomed to them being a part of the discussions involving your healthcare. But once you reach the milestone of turning 18, the federal Health Insurance Portability and Accountability Act (HIPAA) dictates that your medical records and health information become accessible only to you. If you would still like your parents to have access to your medical information, you will need to sign a release of information, even if you are still covered by a parent’s health insurance. This document, sometimes known as a HIPAA Authorization Form, allows your doctor to speak with a designated person about your care and health information.
Now that you’re officially a legal adult, you need to think about this sort of thing. No, it’s not fun, but it’s extremely important.
Most young adults (and some not-so-old adults) don’t think they need an estate plan. Here are some very common misconceptions:
I’m not old enough to need one…
I don’t have enough money to need one…
My parents can still do these things for me…
But, YOUR WRONG!
Are you headed to college?
If you are heading to college, your parents have likely committed to significant costs associated with tuition, housing, books, studies abroad, and more. You may also remain on your parents’ health insurance. While this support will give you what you need as you begin to forge a future and career of your own, you’ll still need to take care of some things on your own.
If you’re 18, your parents can’t negotiate your lease or sign the contract for you to live off-campus.
If you’re 18, your parents can’t discuss your healthcare needs with a doctor.
If you’re 18, your parents can’t call the school to discuss your performance in class.
How can you master this #adulting thing?
One way you can start your life as an adult is to learn to make sound financial decisions. You should ask your parents or another trusted adult how to use a budget, spend responsibly, and be a good steward of your financial assets. It is also the right time to start working with a team of trusted financial and estate planning professionals to make sure you and your future are protected.
Another consideration is appointing someone to make medical and financial decisions for you in the event you are unable to do so. This authority is granted through the use of a Financial Power of Attorney and a Health Care Power of Attorney.
What is a power of attorney? It means that you grant someone else (an “agent”) the power to take care of certain specified medical or financial decisions if you become incapacitated (i.e., unable to make those decisions on your own). It is important to have these documents in place in case of emergencies. You do not have to name your parents as your medical or financial agent; if you prefer, you can choose another trusted adult in your life.
Moving away from home is a big transition. You will be leaving the comfort, familiarity, and safety of your childhood home and striking out into the world to follow your dreams and achieve your goals. With some planning and forethought, you can make your first year away from home a successful and enjoyable one.
Don't worry - we can help!
Hiring an attorney or thinking about estate planning is probably a foreign idea to you – we get it. But you’ll be happy to know that we’ve set up a ton of young adult estate plans for people just like you. We also have the technology that we can do most of it online! So, go ahead and get some information using the form below. We can guide you through what you need and what you don’t – so that you can feel prepared to leave the nest and feel good about #adulting.
