Do You Have A Durable Financial Power Of Attorney For Your College Student?

It’s amazing, and the day is here. Your child is old enough to be in college. You hope you have prepared them for life’s situations, taught them to be good people and want them to make the right decisions. One of the biggest mistakes parents make when their kids head to college is not having a Durable Financial Power of Attorney.

What Is A Power Of Attorney?

When your child signs a power of attorney, they allow someone to act on their behalf under specific circumstances. A durable power of attorney lasts indefinitely but can be withdrawn anytime. Just because your child turns 18 doesn’t mean you’re no longer their parent. But it does mean that you can no longer access their financial and medical information.

If your child is hurt or temporarily unable to care for themself, a durable financial power of attorney will let you access their bank account and pay any necessary bills. You can help them by paying their rent, tuition, or credit card bills. This also holds true if your child has a semester abroad. While gone, you can take care of any financial matters that may arise.

Without a durable power of attorney, the courts must name you a guardian. This is complex, expensive and time-consuming. Having a durable financial power of attorney is a safeguard that should never be overlooked.

Why Does Your Child Need A Durable Financial Power Of Attorney?

There are many circumstances in which a durable power of attorney may be needed:

• Your child might be 18 years old and away at college, but that doesn’t mean they are ready to make wise financial decisions. It’s not uncommon for a child to get sucked into credit cards and other debt. A durable financial power of attorney allows you to help regulate and teach your child about budgeting and help them avoid pitfalls.
• If there’s an accident, your child may be temporarily unable to access their bank and pay their bills. While they are in the hospital, you can still pay their rent, utilities and other bills. Once they are back on their feet, your child can withdraw the durable financial power of attorney and take over their finances again.
• Due to chronic illness, or other disability, your child may be able to live away from you but not completely independent. A durable financial power of attorney allows you to pay the bills when they can’t.

Whatever the reason, your child must have a durable power of attorney before leaving for college. And you want to make sure it is done right. Nothing is worse than needing a power of attorney and finding out there was a mistake, rendering it unusable in an emergency. Working with an experienced estate planning attorney will ensure you have all the right documents, which are legally binding.

Other documents your college-bound child needs:

Is Your Child Graduation From College? Make Sure They Are Protect With a Healthcare Directive

Estate Planning For Your Child Heading To College

Oak Brook Estate Planning Attorney

Protect your children with a Durable Financial Power of Attorney as they head off to college. With expert guidance from the estate planning attorneys at Estate & Probate Legal Group in Illinois, we can help make this happen. Contact us today at 630-864-5835.

AREAS WE SERVE: DuPage, Kane, Lake and Will counties.