Key Estate Planning Documents For Your Recent High School Graduate

Graduating high school is a significant accomplishment in your childs life! This is where we mark the transition into adulthood. Whether your child is heading off to college or getting ready for a new job, it’s crucial to consider the importance of estate planning. For many, this may seem like a premature step. However, establishing these documents can provide protection and peace of mind for both you and your new graduate.

Why Estate Planning is Important for Young Adults

  1. Health Care Decisions: Once your child turns 18, they are legally considered an adult. This means that you no longer have guaranteed access to their medical records or the ability to make medical decisions on their behalf. Estate planning will allow you to establish documents that will help ensure you act in their best interest if they are unable to do so.
  1. Financial Management: Whether you graduate is heading off to college in the fall or entering the workforce, they will likely take more control of their finances which may include bank accounts, student loans and credit cards. Having a plan will help them protect their interest and navigate financial responsibilities.
  1. Asset Protection: As your graudate begins to accumulate assets, estate planning will help protect them and ensure they are distributed according to their wishes if anything were to happen.

Key Estate Planning Documents for Your Graduate

  1. Durable Power of Attorney: This document allows your child to name someone they trust to manage their financial affairs if the event of incapacity.
  1. Health Care Proxy (Medical Power of Attorney): This document allows your child to name someone they trust to make medical decisions on their behalf if they are unable to do so. This document is important in emergencies when quick decisions are necessary.
  1. Living Will (Advance Health Care Directive): This document outlines your child’s individual preferences regarding medical treatment and end-of-life care. A living will will provide guidance to family members and health care professionals about your child’s wishes.
  1. Will: While it may seem premature, a will will allow your child to specify how their assets should be distributed in the event of their passing.
  1. Beneficiary Designations: If your graduate has any life insurance policies, retirement accounts, or bank accounts, they should review and update beneficiary designations. This ensures that assets are distributed according to their wishes and can help avoid probate.
  1. Digital Asset Planning: In today’s digital age, many young adults have online accounts, social media profiles, and digital assets. Consider incorporating provisions for how these assets should be managed or transferred after your child’s passing. This can include access to social media accounts, online banking, and cryptocurrency holdings.

Engaging in these conversations about estate planning with your recent high school graduate can help them understand the importance. Consider it an important opportunity to discuss their wishes. Encourage them to think about who they trust to make these decisions on their behalf.

Conclusion

Ultimately, estate planning may not be at the forefront of your child’s mind, but by establishing key estate planning documents, you can provide peace of mind for both you and your child as they transition into adulthood.

At Fletcher Estate Planning, we’re here to help you and your graduate navigate the estate planning process. If you have questions or would like to schedule a consultation, give us a call!

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