I'm young in college, why do I need an estate plan?

Yes, the will, HIPAA authorization and powers of attorney in My College Estate Plan expire when you reach age 25 or you revoke one or all of them in writing before that.

You should change these legal documents if you no longer trust your parents, no longer want them to inherit from you or control your affairs, you marry, have children, or your financial assets increase dramatically. 

The HIPAA authorization does not allow your parents to see your personal health care information if you are going for a regular doctor or urgent care visit -- in that situation you can choose on a case-by-case basis whether and what you want your parents to know about your health care. They can make health care appointments for you though.

However, if you become incapacitated – either because physically you cannot communicate your health care needs or mentally you can no longer make medical decisions for yourself – or you end up in a hospital emergency room and need care there or thereafter, then in order to help you, your parents need and the POAs and HIPAA authorizations in the My College Estate Plan allow your parents to all your personal health care information – including your mental health records, prescription and contraceptive medications, drug and alcohol test results, HIV and STD test records, etc.

If you are not comfortable with this, then you should not sign My College Estate Plan.

Maybe not. My College Estate Plan © is designed for college students that trust their parents will not misuse the powers granted and who want their parents to help, be in control of things if something happens to them, and ultimately get their property should they pass away. If you do not agree with that, you should not execute My College Estate Plan.

We cannot guaranty every state or country you find yourself in will honor these documents. However, generally, U.S. states recognize documents validly executed in other states. You should check with a local lawyer in the state you are attending instruction to be sure. 

The included power of attorney for finances is based upon the 2006 Uniform Power of Attorney Act which was adopted by Wisconsin in 2010. It has since been adopted by these other states:

The plan includes a durable power of attorney that permits this, however, the IRS and many state taxing authorities require specific forms to be signed to permit the filing of and access to tax returns. If that is an issue for you, check www.IRS.gov and your local state’s taxing authority’s website for guidance.

Yes, the power of attorney for finances included in My College Estate Plan grants your parents that authority, however, like the tax situation, banks and investment firms sometimes have special forms and requirements they insist be signed by you to grant that authority. If you need your parents to have access to your accounts when you are studying abroad, take this power of attorney to your bank before you depart and make sure they will let your parents use it to access your account.

If you have more than $50,000 in your bank and financial accounts, you might want to consider naming someone as a pay-on-death beneficiary on that account. You can do that by contacting the bank or financial institution and completing their internal forms they require. If you were to pass away after making this designation, your account would transfer (likely without probate and quickly) to the individuals or parent(s) you name.

If you die intestate (i.e. without a will) generally the laws of the state where you died will govern who is appointed to handle your estate and who will receive your property. That may be your parents or it could be other people. The will included in the My College Estate Plan makes it clear your parents will be your personal representative and beneficiary of your probate estate.

Most young folks don’t have much more than loans, but wills control not only the disposition of assets you have but the assets that might come into your estate as a result of your death. 

For example, if you pass away from a bad car accident, your estate may have a claim against the drivers that caused the accident for your wrongful death and pre-death pain, suffering and expenses. These “damages” can be substantial and your personal representative controls the prosecution and settlement of that claim for your estate. If you do not have a will, a court selects that person who may or may not be someone you would want.

A will only controls the disposition of your “probate estate” – which are your assets that you have not already identified a beneficiary or successor. If you list a beneficiary on a life insurance policy, IRA, or bank account, or make someone a joint owner of your house or car, those assets generally transfers the way you titled them regardless of what your will says. Your will controls assets you have not made a joint ownership with survivorship or beneficiary designation upon (what lawyers call your “probate estate”).