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What Could Happen if Your College Student Doesn’t Sign a POA?

What Could Happen if Your College Student Doesn’t Sign a POA?

by | Sep 1, 2023 | Blog, Estate Planning, Healthcare Proxy

3-legal-documents-every-college-student-needs
As the new academic year begins, parents across the country are making sure their college-bound students have everything they need for a successful start. From textbooks and laptops to dorm essentials, the back-to-school checklist can be overwhelming. However, there’s one crucial item that often goes overlooked: a Power of Attorney (POA).

A Power of Attorney is a legal document that grants someone the authority to act on your behalf if you become incapacitated or unable to make decisions. Many college students are young adults—excited to embark on their journey of independence—and might not consider the importance of such a document. However, the reality is that unforeseen accidents or illnesses can happen at any time, and having a POA in place provides peace of mind knowing that someone they know and trust has the authority to make medical, financial, and legal decisions on their behalf.

So, what could happen if your college student doesn’t sign a POA? Let’s explore some potential scenarios:

Important medical decisions could be made by someone they don’t trust

If your college student is unable to communicate their medical preferences due to an accident or illness, the state of Alabama will turn to their next of kin: since most college students won’t have a spouse or any adult children, medical care providers will likely turn to parents first, then adult siblings, and then other adult relatives. While this may not sound like a worst-case-scenario situation, family dynamics are often complicated. Maybe the student doesn’t trust that their parents will make decisions along their guidelines, or perhaps they haven’t spoken with their estranged adult sibling in many years. Having a signed POA ensures that an agent of their choosing can make healthcare decisions on their behalf.

Their bills may not get paid

Without a POA, it can be difficult—if not altogether impossible—to gain access to a student’s bank account, or to pay their bills and access other financial assets. This could mean college tuition doesn’t get paid, rent falls to the wayside, they lose access to subscription services, and they incur mounds of late penalties that—for a broke college student—can be a difficult hole to crawl out of.

Academic matters won’t be properly addressed

In case of incapacitation, a POA agent can assist with academic-related issues, like handling course enrollments, communicating with professors, or accessing educational records. Without a POA, your student may miss important deadlines, which could negatively impact their entire academic trajectory.

Legal matters will be left unresolved

If a student becomes incapacitated due to a car accident or other incident with legal ramifications, it’s crucial that a trusted agent has the authority to sign legal documents on their behalf. A signed POA ensures that someone will be able to handle legal affairs on behalf of your college student.

Parents may not be able to access information about their student

We know your student will always be your baby, but once they reach the age of majority, their personal information becomes private—yes, even to you! Without a POA, parents or loved ones may encounter hurdles in obtaining information about their college student’s well-being and current circumstances.

Encouraging your college student to sign a Power of Attorney doesn’t mean they are relinquishing control. Instead, it provides a safety net and peace of mind for everyone involved. Consult with an estate planning attorney to ensure the POA document is customized to your student’s unique needs and state regulations.

While college can be an exciting and transformative time, it’s also essential to prepare for the unexpected. By adding a Power of Attorney to your back-to-school checklist, you are safeguarding your college student’s future and ensuring that their well-being and interests are protected no matter what life throws their way.

Contact Miller Estate and Elder Law

For more information regarding POAs and how to get started, contact our team by giving us a call at (256) 251-2137 or contact us via the brief form below.

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bill@millerestateandelderlaw.com

Don’t Send Your College Student Off to Campus Without These 3 Legal Documents

Don’t Send Your College Student Off to Campus Without These 3 Legal Documents

by | Aug 24, 2023 | Blog, Estate Planning, Healthcare Proxy, trust

3-legal-documents-every-college-student-needs

Estate planning isn’t usually a top priority for college students. In fact, for most incoming freshmen (and returning sophomores, juniors, and seniors…) estate planning doesn’t even crack the top 10 priorities on their list. However, there are certain legal documents that everyone over the age of majority really should have in place, and the implications of not having these documents in place can be quite dire. Below we will outline 3 legal documents that every college student needs.

It’s important to remember that your college student isn’t just embarking on an academic journey; they are heading out into the world to explore their independence. Once they reach the age of majority—18 in most states, and 19 in Alabama—you will lose many of the parental rights you once had. Without certain legal documents in place, you will not have access to their medical records, or be able to make medical or financial decisions on their behalf.

To protect your college-aged child, these are the 3 legal documents that every college student needs.

Healthcare Proxy

A healthcare proxy—also known as a medical power of attorney or advanced healthcare directive—is a legal document that allows a named agent to make medical decisions on your child’s behalf, should they become incapacitated. For college students who are living away from home, this document is essential in ensuring that someone they trust will be responsible for making medical decisions on their behalf, should they become unable to make their own decisions. The healthcare proxy should clearly outline the appointed agent’s authority to make medical decisions, and the types of medical treatments the student is willing to accept or refuse.

Having a healthcare proxy can provide peace of mind to both the college student and their family. The student can trust that they will receive medical care along their own guidelines, while the parent can rest assured that they—or another trusted loved one—will be able to make important decisions on their child’s behalf, should tragedy strike.

Durable Power of Attorney

A durable power of attorney grants an authorized third party the authority to manage your student’s financial affairs, and otherwise make financial decisions on their behalf. This document becomes crucial if the college student faces a medical emergency and is unable to pay bills or conduct legal transactions due to incapacitation.

Whether it’s managing bank accounts, paying bills, or handling rental agreements, a durable power of attorney ensures that someone capable and reliable will oversee these important matters. Most students choose a parent, guardian, or close family member to hold this responsibility.

HIPAA Authorization

Due to HIPAA regulations, if your child is over the age of majority, you will not be able to access their medical records unless they proactively signed a HIPAA authorization. A blanket HIPAA authorization can be included as part of the healthcare proxy, or signed as its own independent document.

College students may feel invincible in their youth, but unforeseen circumstances can occur at any age. Estate planning is a responsible step that every adult should take to protect themselves and their assets, even if you don’t have much in the way of cash, real estate, or property. By drafting these three essential legal documents—a healthcare proxy, a durable power of attorney, and a HIPAA authorization—college students can ensure their wishes are respected, their medical care is managed appropriately, and their financial affairs will be taken care of, even if they are not able to do so themselves.

It’s crucial to consult with a qualified estate planning attorney to ensure that the right documents are in place, and that they are legally sound and tailored to your student’s unique needs. With these important documents in place, college students can focus on their, ahem, studies…with added confidence and security.

Contact Miller Estate and Elder Law

Looking to learn more? Do not hesitate to give us a call at (256) 251-2137 or contact us via the brief form below.

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256-472-1900

bill@millerestateandelderlaw.com

The Difference Between a Power of Attorney, Guardianship and Conservatorship

The Difference Between a Power of Attorney, Guardianship and Conservatorship

by | Jan 5, 2023 | Blog, Caregivers, Estate Planning, Healthcare Proxy

A power of attorney (POA) and a guardianship/conservatorship are different types of legal arrangements, each of which dictates who will care for you and your estate if you become incapacitated. Although each of these arrangements has their place, having a durable power of attorney in place is generally a more proactive way to plan for the “what ifs” of the future. If you need to be able to make decisions on behalf of your incapacitated spouse or aging loved ones, having power of attorney is much easier than going through the burdensome process of establishing a guardianship or conservatorship. Filing for guardianship/conservatorship is not only more expensive, but it’s also more time-consuming, and…a judge may decide not to grant you these roles at all!

What is a Durable Power of Attorney?

A durable power of attorney (POA) is a legal document in which you name a person who will act on your behalf if you become incapacitated or are otherwise incapable of looking after your finances. The agent that you appoint will typically have the power to handle most of your financial matters, including opening and closing bank accounts, signing checks or contracts, and buying and selling real estate. There are several different types of power of attorney documents, but a “durable” power of attorney is one that is specifically designed to remain valid in the event of incapacitation or mental incompetency. A durable POA must be signed while you or your loved one is still of sound mind and body.

What are Guardianships and Conservatorships?

A guardianship is a court proceeding in which someone is given legal control over another person’s personal situation. The individual who assumes guardianship has the right to make decisions involving the other person’s healthcare, whether to put them in assisted living, or otherwise where they should live, etc.

A conservatorship goes hand-in-hand with a guardianship. It is a court proceeding, but rather than being granted the power to make personal decisions, this arrangement grants another person legal control over financial matters: paying bills, cashing checks, accessing bank accounts, etc.

If you were to become incapacitated or otherwise incapable of making financial decisions—and you do not have a durable power of attorney in place—then the court will assign you a guardian and/or conservator. This person—or, in some circumstances, these people—will typically be given the power to make legal, financial, and health decisions on your behalf, and may or may not require court approval to enact these decisions. Before the court approves a guardianship or conservatorship, it requires the testimony of a physician who has personally examined the ward and found that they are indeed incapacitated.

What are the Differences Between a Power of Attorney and a Guardianship/Conservatorship?

There are several major differences between a durable power of attorney and a guardianship/conservatorship, but the most significant is that in the former, you get to choose your agent, while in the latter, the court decides who will be entrusted with the decision-making on your behalf.  Although the court also assigns an attorney to represent the incapacitated individual and ensure that the guardian and/or conservator is acting properly, you can never be sure that this agent will truly be operating in your behalf. The thought of not being able to choose your own agent should give anyone pause.

Another difference between the two arrangements is that a guardianship/conservatorship is much more expensive and burdensome to acquire. A power of attorney is easily and affordably arranged, while a guardianship/conservatorship is a far more intensive process involving at least one doctor and at least two lawyers, all of whom need to be paid.

Don’t Hesitate

The bottom line is that, by ensuring you have a durable power of attorney in place, you can save not only time and money, but your dignity as well. No one likes to think about what will happen if they should become incapacitated, but it’s impossible to predict the future and it’s far better to prepare for any possibility now. Whether for yourself or for an aging loved one, making sure a power of attorney is in place well before the onset of a cognitive disorder is crucial to the security of your estate.

At Miller Estate & Elder Law, we have many years of experience helping our clients establish durable powers of attorney, and navigating difficult medical and financial situations. Contact us today and ensure that you or your aging loved one has a say in their own future.

 

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Healthcare Proxy, Durable Power of Attorney & HIPAA Authorization: 3 Estate Planning Documents Your College Student Needs

Healthcare Proxy, Durable Power of Attorney & HIPAA Authorization: 3 Estate Planning Documents Your College Student Needs

by | Sep 20, 2022 | Blog, Estate Planning, Healthcare Proxy

healthcare proxy

As your child heads off to college, you may have a lot on your mind. Not only is the process of choosing and applying to college a stressful one, but the campus visits and Target shopping sprees in preparation for their segue into higher learning can leave you feeling overwhelmed and emotionally drained. While we don’t want to add another stressor to your plate, there is one important college planning to-do that is too often overlooked: estate planning.

You have spent the majority of your life making medical, legal and financial decisions for your child, but once your child reaches the age of majority—18 in most states (19 in Alabama) —you will lose that control. Without a healthcare proxy, durable power of attorney and HIPAA authorization, you may not be able to gain access to their medical records or finances…even if you are largely responsible for funding their college education!

Estate planning for 19-year-olds is much less complicated than planning for those who are married, have children, or have accrued a complex array of assets. However, it is equally important to do so. If your child is involved in an accident and becomes incapacitated, having these three essential documents in place will ensure that (a.) you have access to their medical records and (b.) are able to make medical and legal decisions for them.

Healthcare Proxy

If your child is injured or becomes seriously ill to the point they are unable to make their own medical decisions, you will not automatically be allowed to make those decisions for them. By drafting a healthcare proxy (also referred to as a medical power of attorney or advanced medical directive) your child can grant you access to their medical records, and legal rights to make medical decisions on their behalf. Without a healthcare proxy in place, you may need to petition the courts to gain access to your child’s medical records, or to make healthcare decisions on their behalf.

HIPAA Authorization

HIPAA regulations prohibit the disclosure of medical records, and, as a result, deny parents’ access to such information for their adult child. Due to this, parents should obtain a blanket HIPAA authorization from their child if they want the option of being apprised of their adult child’s health records. The HIPAA release is an important part of the estate planning process and may be incorporated into the health care proxy.

Durable Power of Attorney

The durable power of attorney is similar in function to the healthcare proxy. It will allow your child to name an agent—you, or another trusted family member—who can make financial and legal decisions on their behalf, should they become unable to do so. Many parents don’t think their adult children have enough financial resources to warrant a need for a durable power of attorney, however without this important document, you will not be able to communicate with banks, universities, or other related institutions on their behalf…even if you are the one footing the bill for their college education!

These estate planning documents are relatively quick and painless to create. Your college-aged child will only need to make a few decisions about who they want to name as appointees. Hopefully none of these documents will be needed, but if unexpected tragedy strikes, you’ll be glad you have them on-hand.

Contact Miller Estate & Elder Law

At Miller Estate & Elder Law, we can make the process of drafting a healthcare proxy, durable power of attorney, and HIPAA authorization fast and efficient. Contact us using the brief form below and a member of our team will reach out to schedule an initial consultation.



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bill@millerestateandelderlaw.com