Why College Students Need an Estate Plan (And Which Documents Are a Must)

It's Saturday night and the college is buzzing with homecoming hype. The football game is almost over- the home team is up by a mile and it's looking like the game is going to be a blow out. You, an 18-year-old college freshman, can’t wait to celebrate your first homecoming weekend away from home. The last thing you are thinking about is “I wonder if I have what I need to make sure my family can help me if something goes wrong?”

Two years into the global pandemic, COVID-19, the college experience has changed drastically. The types of pressures and decisions young adults are facing at college today are more impactful than ever before, yet, once they turn 18 and become legal adults, their parents and loved ones can no longer get information or help make decisions for their college students without the student’s permission. Three legal documents make it much easier for parents to step in and assist their college-aged children in the event of a medical emergency.

Although the types of situations that may require these documents seem few and far between- they are not.

According to the MAYO Health Clinic, up to 44% of college students reported having symptoms of depression and anxiety.[1] A total of 33% of college students engaged in binge drinking in the past month (meaning 5 or more drinks for males or 4 or more drinks for females on one occasion)[2] Also, the number of college aged students using illicit drugs increased to 44% in 2019.[3]

Students facing medical related issues often need guidance from their support systems at home. Mental health and substance use concerns are especially sensitive and complex in nature making it difficult for young people to explain the nature of the concern in order to seek advice. In some cases, the consequences of untreated mental health concerns or substance use leave the student unable to make their own medical decisions leaving it up to the hospital unless a parent or guardian has written permission to act on the student’s behalf.

On a less serious, but equally important note, it is not abnormal for young people to need help filing out student loan applications, navigating health insurance or replacing lost or stolen cell phones and debit cards. These documents also give you permission to help your student in these ways as well.

1. HIPPA Authorization

HIPPA, or the Health Insurance Portability and Accountability Act, ensures that adults are afforded protections from unauthorized release of sensitive medical information. HIPPPA generally will not allow family members to access a student’s health information without express authorization whether or not the student is medically able to give that approval or make medical decisions for themselves at that time.

HIPPA authorizations do not give away the student’s ability to make decisions for themselves, but it is a useful tool for when a student needs or wants assistance communicating with or understanding physicians or other healthcare providers. A HIPPA authorization also lets medical professionals know who they can speak to in case of an emergency and is especially helpful in getting real time updates on the student if they were to be hospitalized.

2. Healthcare Power of Attorney

A Healthcare Power of Attorney (or Advance Health Care Directive in Minnesota) is a document that allows you to select a person you trust to step in and make health care decisions for you if you are unable to do so yourself. Anyone 18 years or older should appoint someone to act in that capacity on the off chance the person becomes unable to manage their own personal care or loses the ability to understand one’s actions. The alternative is to rely on the local law of whatever state your student is located in at the time that you would be making decisions for them. Each state has a different law but often the “default” decisions that can be made by family are restricted and most serious medical decisions are left up to the medical professional caring for the patient.

Each state has a different form for appointing a health care agent. For this reason, it is best for the student and their families to complete a health care directive in both the state where the family lives and the state where the student will be living. Both the student and the person they appointed should keep an original copy and a digital copy of the document because these documents are most often needed at a moment’s notice.

3. Financial Power of Attorney

A Financial Power of Attorney, sometimes called a Durable Power of Attorney, is a simple and cost-effective way to arrange for a trusted person to be able to act on the student’s behalf to manage their finances and sign legal documents if the student is ever unable to do so for themselves. Financial Power of Attorney documents can be used to assist in bill paying, taking out loans for school, signing apartment leases or purchasing vehicles. These documents are very powerful, and the person appointed should be someone both the family and the student trust. With great power, comes great responsibility (and great convenience when used correctly!)

[1] https://www.mayoclinichealthsystem.org/hometown-health/speaking-of-health/college-students-and-depression

[2] National Institute on Alcohol Abuse and Alcoholism. (2021). https://www.niaaa.nih.gov/publications/brochures-and-fact-sheets/college-drinking

[3] Schulenberg, J. E., Johnston, L. D., O’Malley, P. M., Bachman, J. G., Miech, R. A. & Patrick, M. E. (2020). Monitoring the Future national survey results on drug use, 1975–2019: Volume II, College students and adults ages 19–60. Ann Arbor: Institute for Social Research, The University of Michigan.