Burner Prudenti: Helpful Parenting versus Helicopter Parenting

Q: My eighteen-year-old just started college. I know my child is considered a legal adult, but is there anything I can do to help them navigate “adulthood”? How can I prepare them?

A: There are several legal tools parents and children that allow parents to assist their children if they need help or become unable to make their own decisions.

A Power of Attorney (POA) is an important tool, which allows an individual, also known as a “principal,” to name an agent who can transact on his or her behalf. A POA allows an agent to act on the principal’s behalf at any time, a springing POA only allows an agent to act if a doctor determines the principal does not have mental capacity to make decisions. For young adults, it might make the most sense to name a parent as agent. To establish a POA, the principal must be eighteen years old.

An agent can help manage finances, work with financial and educational institutions, pay bills, apply for financial aid, and hire professionals on the principal’s behalf. While most children can receive health insurance through their parents until he or she turns twenty-six years old, insurance companies may want the young adults to manage their own coverage and claims. However, with a POA, an agent can help their child navigate the complicated woes of health insurance.

For young adults who rely on a 529 account to pay tuition, it is important to understand how the account works. Interestingly, if a parent is the owner of the account and the young adult is a beneficiary, the parent does not need a POA to pay tuition to the beneficiary’s educational institution. Only the owner of the account can make withdrawals.

A Health Care Proxy can be used by a young adult to name a parent or trusted adult to make healthcare decisions if he or she cannot make their own. A HIPAA release can authorize an agent to access or request medical records. A Living Will can also provide guidance on end-of-life care, including decisions about life-sustaining treatment. While these issues may be difficult for a young adult to consider, planning provides greater autonomy and clarity.

Higher education, healthcare, and financial matters can be overwhelming for young adults and their parents. Thoughtful planning can help parents provide support while fostering independence. An open conversation with your child and an estate planning attorney can help your family understand which tools are appropriate for your circumstances.

By Erin Cullen, Esq. Erin Cullen, Esq. is an associate attorney at Burner Prudenti Law, P.C. focusing her practice areas on Trusts and Estates. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.