Aviva Pinto is a CDFA, CDS and Managing Director and Wealth Manager at Wealthspire Advisors.
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Your child is turning 18. Some may be headed to college; some may still be in high school and living at home. Whatever their plans, 18 is a huge milestone. Most states consider 18 to be the “age of majority” (in Alabama and Nebraska it is 19). While your child may not be an adult in your eyes, in the eyes of the U.S. Federal government, there are many legal and financial implications. They now can vote, join the military and drink in most countries outside of the U.S. They can change their name, drop out of school, get married, be an organ donor, file a lawsuit, adopt pets or children, sue someone, and get sued, go to jail as an adult and gamble.
Financially, they can open bank and investment accounts, buy and sell securities, bitcoin and NFTs, buy lotto tickets, get credit cards, buy a car, rent or buy real estate and apply for a mortgage. All UTMA accounts become theirs. And, most importantly, they do not need to share any of this information with you.
You will no longer be able to see their medical records, grades, tuition bills or financial statements without their consent.
If your 18-year-old is on your medical insurance plan or your car insurance plan, you can find out about traffic violations or medical claims on your policies. However, if your child wants their doctor to provide information to you, they need to sign a release of information form with your name on it.
As for grades and tuition bills, your child can give their parents access to information on the college’s website, but they are not required to! If you are paying their bills, this could be a huge bargaining chip.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) gives you no rights over their information. Once they are 18, their information becomes private. If your child is ill or in an accident, you may not receive information from doctors about your child’s condition. You will have no right because your child is considered an adult and therefore can make their own decisions about their care.
We have clients that are unaware of these issues. We consult with them and let them know what they can do to be able to help their children should they need it.
The following documents will allow you access. Without them, you will have to go to court to obtain access to your child’s health and financial information.
- Durable power of attorney.
- Health care proxy with a HIPAA release.
Durable Power Of Attorney
This allows the parents to make financial decisions on behalf of their child should they be unable to do so. If your 18-year-old is unable to handle their financial affairs, a power of attorney can designate the parent(s) to make decisions for them and ensure their finances are handled the way they wanted them to be.
Health Care Proxy
This is also called a “medical power of attorney” or an “advance directive” and allows the parent to make health care decisions for their child if they lose the ability to make decisions for themselves. This will allow your child to make sure doctors and other health care providers follow their intentions. The form must include a HIPAA release. The Health Insurance Portability and Accountability Act of 1996 release (HIPAA release) allows parents to get information from a doctor, hospital or health care provider if they are unable to do so. The release will stipulate that the medical professionals must abide by the parents’ decisions as if the child were making the decisions. The child can choose how much decision-making authority they give their proxy. They can stipulate their desires, including instructions about organ and/or tissue donation.
All forms can be found online, and you do not need an attorney to do them—only two witnesses (18 or older). However, we recommend that you consult with a trust and estate attorney who can make sure your specific needs are being met and are drafted correctly, and they can help you and your child complete these forms.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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