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Written by: Erin Calpin, Esq.
Estate planning is a topic often associated with older individuals, but it holds importance for college students as well. While their assets may be limited, college students can benefit from having an estate plan that addresses crucial aspects of their lives. From healthcare decisions to managing digital assets, a well-crafted estate plan provides peace of mind and ensures that a student’s wishes are known and respected. In this article, we will explore why college students should consider creating an estate plan and discuss the essential documents that can help protect their interests and those they care about. By taking proactive steps now, college students can prepare for the unexpected and navigate important legal and financial matters with greater confidence.
Do College Students Need an Estate Plan?
While estate planning is often associated with older individuals or those with significant assets, it can also be beneficial for college students. Although college students typically have limited assets, there are certain aspects of estate planning that can be relevant to their circumstances. Here are a few reasons why college students should consider having an estate plan:
1. Healthcare Decisions: College students who are 18 years old or older are considered legal adults and may want to designate someone to make healthcare decisions on their behalf if they become incapacitated. Creating a healthcare power of attorney or a healthcare directive allows them to appoint a trusted person to make medical choices when they are unable to do so. Without a Healthcare proxy in place, a student’s parents have no legal right to medical information about their adult child.
2. Financial Matters: While college students may not have substantial assets, they may still possess bank accounts, investments, or other financial accounts. By creating a durable power of attorney, they can designate someone to manage their financial affairs if they are unable to do so themselves, and avoid having to have a legal guardian appointed in the event of incapacity.
3. Digital Assets: College students are likely to have a significant online presence, including social media accounts, email accounts, and digital files. Estate planning can address the management and disposition of these digital assets in the event of a student’s incapacity or death.
4. Student Loans: If a college student has taken out student loans, having an estate plan can help address how these loans should be handled in the event of death. It can provide instructions on how to manage and settle the outstanding loan balances.
5. Peace of Mind: Even though college students may not have extensive assets, having an estate plan in place can offer peace of mind. It ensures that a student’s wishes are known and can help relieve the burden on their loved ones during difficult times.
It's important to note that estate planning documents can be tailored to an individual's specific needs and can be updated as circumstances change. Consulting with an estate planning attorney can help college students understand their options and create a plan that suits their unique situation.
What Documents Should a College Student Have?
For college students, several essential estate planning documents can provide protection and ensure their wishes are carried out. Here are the key documents that college students should consider having:
1. Healthcare Power of Attorney: This document allows a college student to designate someone as their healthcare agent to make medical decisions on their behalf if they become incapacitated or unable to communicate their wishes.
2. HIPAA Authorization: The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of an individual's medical information. By signing a HIPAA authorization, a college student can authorize specific individuals to access their medical records and discuss their healthcare with healthcare providers.
3. Living Will or Healthcare Directive: A living will or healthcare directive outlines a college student's preferences regarding end-of-life medical treatment, such as life support, resuscitation, and organ donation. It provides guidance to healthcare providers and family members about their wishes if they are in a terminal condition or persistent vegetative state.
4. Durable Power of Attorney for Finances: A durable power of attorney allows a college student to appoint someone they trust to handle their financial matters if they are unable to do so. This includes managing bank accounts, paying bills, signing documents, and making financial decisions on their behalf.
5. Will or other Testamentary Documents: While college students may not have significant assets, having a will can still be beneficial. A will allows a student to specify how assets should be distributed upon death. It can also designate an executor to manage the estate and guardians for any dependents or pets a student may have.
6. Digital Asset Inventory: College students often have a substantial presence in the digital world. It's advisable for a student to create an inventory of digital assets, including online accounts, social media profiles, email accounts, and any valuable digital files. A student can provide instructions on how these assets should be managed or handled after death.
7. Beneficiary Designations: College students should review and update beneficiary designations on any accounts that allow them, such as life insurance policies, retirement accounts, or investment accounts. This ensures that the intended individuals receive those assets directly upon their passing, bypassing the probate process.