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Estate plans for adult children being supported by their parents

| May 3, 2021 | Estate Planning |

These days, many children in the Jackson area are not fully self-sufficient adults the minute they reach age 18. Parents may continue supporting their adult children while their child is in school or working their first job. The adult child may live with the parent who pays for expenses like health care, insurance and other expenses. However, these young adults are just that — adults, meaning parents cannot by default view their medical records or make medical decisions on their behalf, or access financial information, even in emergency situations. For this reason, it is important for young adults to have a medical power of attorney and financial power of attorney as part of a starter estate plan.

Medical power of attorney

There are two types of power of attorney a young adult should have. First, a young adult should have a health care power of attorney. In this document, they can name the person they want to make health care decisions on their behalf if they are incapacitated, for example, if they are in a coma following a car crash. It may be necessary to file for guardianship or conservatorship, and it may also be a good idea to establish a supplemental needs trust.

Financial power of attorney

A young adult should also have a financial power of attorney. In this document, they can name the person they want to manage their financial affairs if they become incapacitated. For example, in a financial power of attorney, the adult child can give their parents the authority to access and manage college accounts, bank accounts, rental agreements, insurance policies and more. Again, it may be necessary to file for guardianship or conservatorship, and again it may be a good idea to establish a supplemental needs trust.

Learn more about estate planning

This is only a very brief overview of how adult children can benefit from estate planning. This post is for educational purposes only and does not contain legal advice. Our firm’s website on estate planning may be a good resource for those who want to learn more about this topic.