Even Young People Need Estate Planning
“If I don’t have any assets, and I would want everything to go back to my parents anyway, why in the world do I need a Will at 20?”
As they pack their bags and stock up on under-bed boxes for college, the last thing on your college-age kids’ mind is an estate plan. Even as they don the graduation cap and gown, an estate plan doesn’t even make a blip on their radar. Perhaps the checklist for adulthood is replete with tasks more important than a Will, but a simple, even bare-bones estate plan should absolutely make the list.
Here’s a possible scenario: your adult child has an accident and is hospitalized while in college. You arrive at the hospital only to discover you are not entitled to see his medical records. If he is unconscious and cannot give you verbal authorization, you’re in the dark, and may not even be able to participate in his health care decisions. Most parents are shocked when they hear this.
The good news is Health Care Powers of Attorney are simple, straightforward and standardized forms giving you the peace of mind you need to make informed decisions based on access to their full medical records. Click on the following link to access the Georgia Advanced Directive for Healthcare.
After you get the Healthcare Directive in place, consider talking to your child about a Will. The significance of such a document is often overlooked by a young adult. Without a Will, a person’s assets will pass according to the State’s instruction. While this may not be terrible, a parent who has transferred assets to their children may not want those assets back if such transfers were part of a larger estate plan. In addition, young adults may have more financial assets than they think. Custodial accounts constitute a significant sum of assets held by young adults. Finally, consider a digital assets power in both a Will and a General Durable Power of Attorney for your young adults. Vast amounts of information and access to accounts and other assets are now stored in the cloud. Getting access to these digital files can be more difficult than you think without an explicit grant of power from your child in a written document.
When your kids come home for Thanksgiving with laundry that weighs more than your turkey dinner, have the conversation about getting these simple documents in place. We are here to answer any questions you, or your young adult, may have.
For more information regarding this or any other estate planning concern, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com, call us at 404-255-7400 or send us an email.
In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.
