Back to School for Your College Students

Legal Matters to Consider for Young Adults

With August now upon us, parents of college students are busy planning for their return to academic life in the coming weeks.  We all have our checklists – dorm fridge, sheets and towels, backpack, laptop – but how about their legal affairs?

When your child was a minor (under the age of 18 in New York) you were their parent and natural guardian.  When you took them to the doctor, the doctor would speak to you and you made their health care decisions.  When they wanted to open an account at the bank, you went with them and you were the co-signer.  Now that they are over 18 and a legal adult, the world has changed.

Below is a set of questions and answers to address the legal challenges of assisting your returning college student with their legal affairs.

What legal documents should my college student have?

They should have a power of attorney (POA), a health care proxy, and a health care information authorization, at a minimum.  Also – depending on their particular financial circumstances, they may need a Will.

Why should they have a POA?

They should have a POA for the same reason that all adults should have a POA.  It will allow them to choose someone they trust to handle their financial affairs, if they cannot do so themselves.  Temporary or permanent disability could occur to anyone, and if it does, you want to make sure you have a POA in place to ensure your financial affairs are handled properly.

Who should they choose as a POA agent?

Typically, they would choose one or both of their parents or another close family member or friend.  Under New York law, the agent will also have to sign the POA document.

Why should they have a Health Care Proxy?

As with a POA, they should have a Health Care Proxy for the same reason that all adults should have a Health Care Proxy.  It will allow them to choose someone that they trust to handle their health care decision making for them, if they cannot do so themselves.  The Health Care Proxy only takes effect if they cannot make their own health care decisions.

Who should they pick as Health Care Proxy agent?

As with a POA, they would typically choose one or both of their parents or another close family member or friend.  With a Health Care Proxy, you cannot choose two people to act together, i.e. you cannot choose Mom and Dad.  They will have to choose one first and the other second.  Of course, this does not mean that Mom and Dad will not discuss and decide things together – presumably they would.

Why should they have a health care information authorization?

Now that they are adults, the health care providers at their college will need their authorization to speak with their parents or other trusted family or friends about their medical care.  Generally speaking, they would want those people to be able to access their health care information and be part of their support team if they needed medical assistance.

What other health issues are important?

It is also important to make sure your child has appropriate health care insurance coverage for the state where your child will attend school.  Their college will usually require proof of your coverage or require you to pay for separate health care coverage that the school provides.

Should they have a Will?

That really depends on the financial circumstances and wishes of your college student.  If they do not have a Will, any assets they own in their name only will pass on to their closest relatives pursuant to the laws of intestacy, if they die.  In New York, if we presume that the student is unmarried and has no children, the laws of intestacy provide that their assets go to their parents. If they have no surviving parents, their assets go to their siblings.  If they have no parents or siblings, their assets go to more distant blood relatives.

Does a Will cover all of their assets?

No.  Their Will would not cover any assets they own jointly with someone else or which are payable to a named beneficiary.  For example, if they have a joint bank account with their mother, that account will go to their mother if they die.  As an additional example, if they have a life insurance policy on their life payable to their father, the death benefit on that policy will go to their father if they die.

As you are putting together your back-to-school checklist for your returning college student, it would be a good idea to add the following: POA, health care proxy, health care authorization, and possibly a Will.  If all of these documents are in place, you will be prepared if unforeseen financial or health care challenges occur during the upcoming academic year.

Matthew J. Dorsey, Esq. is a Shareholder with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY. Over his twenty-seven years of practice, he has focused in the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at (518)584-5205, mdorsey@oalaw.com and www.oalaw.com.