Key Questions: Are Your Young Adult's Essential Documents Ready for Graduation?

What Every Parent Needs to Know Before Their Child Leaves for College or the Workforce

As graduation season approaches, parents face a pivotal moment: guiding their young adults through the transition to college, the workforce, or other pursuits. This is the time to ask yourself key questions about readiness — are you and your child prepared for the responsibilities and decisions that adulthood brings? One of the most important steps is ensuring essential financial and medical documents are in place, thus supporting your child’s independence while providing peace of mind.

With my second child graduating high school soon, I’ve been working alongside an estate planning attorney, putting the essential documents in place. I did the same thing with my other son, who is now wrapping up his second year in college.  Thank goodness we haven’t had to rely on these documents for anything but having them offers invaluable reassurance.

Here are the essential documents you should have once your child turns 18:

1. Healthcare Power of Attorney (or Healthcare Proxy)

What it does:

This designates someone to make medical decisions if your child cannot do so themselves. Ask: If my child faces a medical emergency, who will advocate for their wishes?

Why it matters at 18:

Once your child turns 18, you no longer have automatic access to their medical information or authority to make decisions

2. Health Insurance Portability and Accountability Act (HIPAA) Authorization

What it does:

HIPAA authorization allows doctors, hospitals, and insurers to share medical information with designated individuals. Without it, you may be unable to access important health information in an emergency. Ask: Do I have the necessary permissions to support my child if urgent health issues arise?

Why it matters at 18:

When your child turns 18, you are not legally required to accompany your child on doctor’s visits. Ultimately, whether you can be involved with their medical care depends on your child’s wishes.  Without consent provided by your child to providers, privacy laws prevent them from discussing diagnosis, treatment or test results with you. However, you may want to stay involved until your child is more comfortable managing care on their own.

3. Durable Power of Attorney (Financial)

What it does:

This allows someone to handle financial matters — banking, bills, signing documents — if the individual becomes incapacitated. Ask: If my child is unable to manage their finances temporarily, who can legally step in to pay bills, access accounts, and handle time-sensitive paperwork?

Why it matters at 18:

If an accident or illness occurs, parents cannot automatically access bank accounts or deal with financial institutions. Without this document, a court-appointed guardianship may be required.

4. Simple Will

What it does:

A wiil states who should receive assets at death and can name a personal representative to handle final affairs.

Why it matters at 18:

Even minimal assets — checking accounts, a car, digital property — need direction. A will avoids default state rules and simplifies administration, even if the estate is small.

5. Family Educational Rights and Privacy Act (FERPA) Waiver (for Students)

What it does:

A FERPA waiver allows colleges to release academic information like grades and transcripts, disciplinary information, or tuition details to parents. 

Why it matters at 18:

FERPA is a federal law that protects the privacy of student education records and gives control over those records to students once they turn 18 or attend post-secondary school (college, trade school etc.). Parents no longer have access to grades, transcripts, disciplinary information, or tuition details. For parents who will be helping manage tuition and payments, this is especially important.

6. Digital Asset Authorization (Optional but Increasingly Relevant)

What it does:

This gives someone authority to access digital accounts (email, cloud storage, social media, and online financial tools).

Why it matters at 18:

If your child is in an accident or is seriously ill, their phone, email, social media accounts, and school portal may hold key information, but parents are locked out.  Many important financial communications and records are digital. Without authorization, providers may refuse access entirely. 

7. Living Will/Advance Directive (Optional but Helpful)

What it does:

A living will or advance directive documents wishes about life-sustaining treatment in serious medical situations.

Why it matters at 18:

Although serious, end-of-life medical decisions are unlikely at age 18, and many and most medical emergencies at this stage of life can be handled by a Healthcare Power of Attorney, this document can make sense for some individuals. This ensures that their end-of-life preferences are respected, and it relieves loved ones from having to make difficult decisions during a medical crisis.

For an 18‑year‑old, estate planning is not about wealth, it’s about:

• Access

• Authority

• Avoiding court involvement during a crisis

• Making sure trusted people can help when it matters most
   

These documents are typically:

• Inexpensive

• Easy to update

• Highly protective for both the young adult and their family
   

After documents are all signed, witnessed (if necessary), and stored safely, make sure you share copies between parents, children, and named agents. I have them stored digitally as well. And I made sure my child has access to them, should he ever need to present them to someone.

At least I have some peace of mind knowing these are in place in case of emergency.  Now, I just have to brace myself for being an empty nester this fall!

For more information, please contact your advisor.