Allegan Attorney, Margaret Webb, Talks Why Graduating 18-Year-Olds Should Get a Power of Attorney

As high school graduation is here, many young adults are preparing to embark on new adventures, whether that means heading off to college or trade school, starting a job, or traveling the world. Amidst all the excitement, one crucial aspect often gets overlooked: legal preparations. Specifically, establishing a power of attorney (POA) can be an essential step for graduating 18-year-olds and their families.

The Importance of a Power of Attorney

A power of attorney is a legal document that allows an individual (the “principal”) to appoint someone else (the “agent” or “attorney-in-fact”) to manage their financial and medical affairs if they are unable to do so themselves. For young adults turning 18, this becomes especially important because they are now legally considered adults. Parents or guardians no longer have the automatic right to make decisions on their behalf or access their financial or medical information.

Why Graduating 18-Year-Olds Need a POA

1. Legal Autonomy: Upon turning 18, young adults gain full legal autonomy. This means that without a POA, parents cannot access their adult child’s bank accounts, medical records, or make decisions in an emergency. A POA ensures that trusted individuals can step in if necessary.
2. Medical Emergencies: Accidents and illnesses can happen unexpectedly. If an 18-year-old is incapacitated and unable to make medical decisions, having a healthcare power of attorney allows a designated person to make crucial medical decisions on their behalf.
3. Financial Management: Whether they are managing a student loan, handling a bank account, or dealing with other financial matters, a financial power of attorney ensures that someone can manage these responsibilities if the young adult is unable to do so.
4. Education Decisions: In the context of college, if a student is incapacitated, having a POA can allow parents to make decisions related to their education, such as managing tuition payments or communicating with the institution about their welfare.
5. Peace of Mind: Knowing that there is a trusted individual who can legally step in to handle critical matters provides peace of mind for both the young adult and their family. It ensures that in times of crisis, there is a clear plan in place.

Types of Power of Attorney

There are two primary types of POA that are particularly relevant for graduating 18-year-olds:

1. Healthcare Power of Attorney: This allows the appointed agent to make medical decisions on the principal’s behalf if they are unable to do so. It is also beneficial to include a HIPAA release form, which permits healthcare providers to share medical information with the designated person.
2. Financial Power of Attorney: This authorizes the agent to manage the principal’s financial affairs, including banking, paying bills, managing investments, and handling taxes.

How to Set Up a Power of Attorney

1. Consult with an Attorney: While there are generic forms available online, it is advisable to consult with an attorney to ensure that the POA documents are tailored to the individual’s specific needs and comply with state laws.
2. Discuss with Family: It is important for young adults to discuss their wishes and decisions with their family. This ensures that everyone is on the same page and understands the responsibilities involved.
3. Choose a Trusted Agent: The agent should be someone reliable and trustworthy, often a parent, close relative, or trusted friend. It is essential that the chosen agent understands and is willing to take on the responsibilities.
4. Complete and Sign the Documents: After drafting the POA documents with an attorney, they must be signed, often in the presence of a notary public, to become legally binding.
5. Distribute Copies: Ensure that the agent, the principal, and relevant institutions (such as banks or healthcare providers) have copies of the POA documents.

As young adults step into their new roles as legal adults, preparing for unforeseen circumstances by setting up or updating a power of attorney is a wise decision. It provides a safety net, ensuring that their financial and medical affairs are managed smoothly in case of an emergency. This legal preparation not only empowers them but also brings peace of mind to their families, knowing that they can effectively support their children through any unexpected challenges that may arise.