Takeaways

  • When a child turns 18, parents no longer have automatic access to their medical records or financial accounts.
  • Powers of attorney with HIPAA authorization provisions can help parents assist in an emergency.
  • These documents should be completed before the student leaves for college

When your child turns 18, something changes that most families don’t anticipate: you lose automatic access to their medical records and the ability to make financial or medical decisions on their behalf. No matter how much college tuition you’re paying or how closely you manage their day-to-day life, they are now a legal adult, and the law treats them as one.

For families with college-bound students, this shift can have real consequences. If your 18-year-old is hospitalized far from home and can’t speak for themselves, their doctor cannot legally discuss their condition with you without prior authorization. If a financial emergency arises and your student is incapacitated, you may not be able to act on their accounts.

Before your new adult child heads to off to college, have them sign three documents:

  • a financial power of attorney, and
  • a health care power of attorney that includes a HIPAA authorization

Together, these cover the legal bases most families don’t think about until they need them.

What Is a Financial Power of Attorney?

A financial power of attorney is a legal document in which one person, the “principal,” gives another person, the “agent” or “attorney-in-fact,” the authority to handle financial matters on their behalf. For a college student, this typically means authorizing a parent (or other trusted family member) to manage bank accounts, pay bills, handle tax matters, deal with landlords or financial aid offices, or take other financial actions if the student is unable to.

A “durable” financial POA is one that remains in effect even if the principal becomes incapacitated, which is the scenario most families want to prepare for. Under English Common Law, out of which modern day statutory powers of attorney evolved, an “attorney-in-fact”, the title of the agent to whom authority was granted, lost that authority if the principal became incapacitated. Without one, parents have no legal authority to act on a child’s financial accounts, even in an emergency. In Pennsylvania, notes Dionysios Pappas, an attorney with the law firm of Vasiliadis Pappas Associates, powers of attorney are presumed to be durable without the need to expressly say so. Nevertheless, out of an abundance of caution, these documents customarily expressly declare they are durable.”

Situations Where This Can Matter

  • Your student is in an accident and hospitalized for weeks. Bills, rent, and financial aid paperwork still need to be managed.
  • A banking error freezes their account while they’re abroad on a study trip. You need to resolve it without them being present.
  • They need someone to file tax returns or sign documents during a medical crisis.

A well-drafted financial POA can be broad or narrow in scope. Some families prefer to authorize only specific actions, while others give more general authority.  The lawyers at the law firm of Vasiliadis Pappas take the view that if a principal doesn’t trust the agent with broad authority, then it’s better not to name that person at all.  Legal alternatives, such as a revocable trust, are available if there are no trustworthy agents available to serve under a power of attorney. That’s rarely the case where a parent serves as agent for a young adult child.

What Is a Health Care Power of Attorney?

A health care power of attorney, sometimes also called a health care proxy or medical power of attorney, allows an individual to designate someone to make medical decisions for them if they become unable to do so. This is different from a living will, which states specific end-of-life wishes. A health care POA appoints a trusted person to make judgment calls across a range of medical situations. Specifically, the agent can make facilitate health care treatment, such as accessing medical records, getting second opinions, or hiring or firing health care providers, and if the principal is unable to make or communicate health care decision, to authorize or refuse medical treatment.

For a college student who might be living hours from home, this document can be critical. If they are seriously injured, unconscious, or otherwise unable to communicate their wishes, a medical POA ensures that a parent or other trusted adult can speak with doctors, consent to treatment, and make decisions in real time.

Without a Health Care POA

  • Doctors cannot legally consult with you about treatment decisions.
  • Hospital staff may not be able to share information about your student’s condition or prognosis.
  • Decisions about surgery, medication, or other care may be delayed while legal authority is sorted out.

Most states have specific forms for health care powers of attorney. Stay away from these cookie-cutter documents. Instead, seek the assistance of an attorney who can explain how they work, tailor them to your family’s specific needs, and ensure that the power of attorney is properly executed.  Ensuring that a power of attorney is properly executed to meet statutory requirements is especially crucial as regards financial powers of attorney.

What Is a HIPAA Authorization ?

The Health Insurance Portability and Accountability Act, or HIPAA, sets strict rules about who can access a patient’s medical information. Once a person turns 18, their medical records become private; even their parents cannot access them. A HIPAA authorization form is a signed document that allows a health care provider to share medical information with specified individuals. It makes sense to incorporate this as part of one’s health care power of attorney

A HIPAA authorization doesn’t grant the ability to make decisions; it simply opens the door to communication. But that communication can be crucial. Parents who receive a call that their college student has been taken to the emergency room often find themselves in the dark as to what is happening.

A HIPAA form can be as general or as specific as the student wishes. It might authorize a parent to receive any and all health information, or it might be limited to emergencies. Students should discuss their preferences openly with their families.

When Should These Documents Be Signed?

Ideally, a student should sign these documents before leaving for college. A quiet weekend at home, before the chaos of move-in day, is a natural time to review these documents as a family. Some families address this the summer after a student turns 18 or before their first semester of college begins.

For students who are already away at school, it’s not too late. These documents can be signed at any time the student has legal capacity to do so.

Students who want to study abroad should consider completing these documents before departure. Legal situations in foreign countries may be more complicated, and having existing authorizations in place can simplify matters.

A Note on State Laws and Legal Advice

Since powers of attorney are governed by state law, requirements vary. A document valid in one state might not be recognized in another, though many states have provisions for recognizing out-of-state documents.

The Bottom Line

Turning 18 is a milestone worth celebrating, but it comes with legal boundaries that most families don’t anticipate until they run into them. Financial and health care powers of attorney are not grim or overly cautious documents. They are straightforward tools that ensure a parent can step in and help when their adult child needs it most.

Contact the lawyers at Vasiliadis Pappas to help implement these measures for your college bound child.