It is Spring once again and graduation ceremonies abound! If you are proudly celebrating the momentous occasion of your child’s graduation from high school and will soon be sending them off to college, congratulations!
Over the next few months, between the close of one chapter and the beginning of another, there is much to plan and consider - from tuition payments and room and board, to health insurance coverage.
But, did you know that although your child may be counting on you almost entirely for support, once they are 18 years of age or older, privacy laws would keep financial and medical providers from disclosing important information regarding your child? Paying the bills doesn’t give you the right to access your adult child’s personal, private information. You need their written authorization.
In most cases, this would likely not be a problem. College students living away from home for the first time should be encouraged to be self-reliant and financially responsible. This transitional time provides young adults with the opportunity experience life as an adult for the first time.
But what if the unthinkable were to happen? Would you be able to access information about your child’s condition if they were to be injured or become seriously ill? Would you be able to step in and manage their financial affairs should they be incapacitated or unable to make decisions on their own?
Without three simple documents, you might not have the legal right to intervene at a time when your child would need you most. All college students, and their parents or guardians, should understand that it is imperative that they have the following documents in place before heading off to school:
1. Durable Power of Attorney: The Durable Power of Attorney will allow your child to authorize you to manage his financial affairs either immediately or in the future should he become mentally or physically unable to do so. This would authorize you to handle tasks such as paying bills, applying for social security or government benefits and opening and closing accounts if necessary.
2. Medical Power of Attorney: The Medical Power of Attorney allows your child to authorize you to make medical decisions if he or she is incapacitated and unable to do so. An agent acting under a Medical Power of Attorney is authorized to see the principal’s medical records to make informed medical decisions on his or her behalf.
3. HIPAA Release: HIPAA (the Health Insurance Portability and Accountability Act of 1996) requires health care providers and insurance companies to protect the privacy of patient’s health care information. Those who violate HIPAA are subject to civil and criminal penalties, including jail time, which makes them reluctant to share protected health information without an authorization.While it’s true an agent under a Medical Power of Attorney has the authority to view the principal’s medical records, the Medical Power of Attorney does not grant authority to the agent until the principal is incapacitated. If capacity is questioned, then HIPAA regulations would prevent access to protected health information. This means that even parents may be prevented from accessing their children’s medical information without an authorization. By signing a HIPPA release your child can authorize doctors to share diagnoses and treatment options with you.
These papers can be drawn up quickly, with a minimum of fuss, as a part a comprehensive Family Estate plan for $150 or independently for $350. So before the summer months slip away and you find yourself sending your child off on their next great adventure, take the time to discuss with them the importance of taking care of their legal lives.
And it makes a very practical gift!
Over the next few months, between the close of one chapter and the beginning of another, there is much to plan and consider - from tuition payments and room and board, to health insurance coverage.
But, did you know that although your child may be counting on you almost entirely for support, once they are 18 years of age or older, privacy laws would keep financial and medical providers from disclosing important information regarding your child? Paying the bills doesn’t give you the right to access your adult child’s personal, private information. You need their written authorization.
In most cases, this would likely not be a problem. College students living away from home for the first time should be encouraged to be self-reliant and financially responsible. This transitional time provides young adults with the opportunity experience life as an adult for the first time.
But what if the unthinkable were to happen? Would you be able to access information about your child’s condition if they were to be injured or become seriously ill? Would you be able to step in and manage their financial affairs should they be incapacitated or unable to make decisions on their own?
Without three simple documents, you might not have the legal right to intervene at a time when your child would need you most. All college students, and their parents or guardians, should understand that it is imperative that they have the following documents in place before heading off to school:
1. Durable Power of Attorney: The Durable Power of Attorney will allow your child to authorize you to manage his financial affairs either immediately or in the future should he become mentally or physically unable to do so. This would authorize you to handle tasks such as paying bills, applying for social security or government benefits and opening and closing accounts if necessary.
2. Medical Power of Attorney: The Medical Power of Attorney allows your child to authorize you to make medical decisions if he or she is incapacitated and unable to do so. An agent acting under a Medical Power of Attorney is authorized to see the principal’s medical records to make informed medical decisions on his or her behalf.
3. HIPAA Release: HIPAA (the Health Insurance Portability and Accountability Act of 1996) requires health care providers and insurance companies to protect the privacy of patient’s health care information. Those who violate HIPAA are subject to civil and criminal penalties, including jail time, which makes them reluctant to share protected health information without an authorization.While it’s true an agent under a Medical Power of Attorney has the authority to view the principal’s medical records, the Medical Power of Attorney does not grant authority to the agent until the principal is incapacitated. If capacity is questioned, then HIPAA regulations would prevent access to protected health information. This means that even parents may be prevented from accessing their children’s medical information without an authorization. By signing a HIPPA release your child can authorize doctors to share diagnoses and treatment options with you.
These papers can be drawn up quickly, with a minimum of fuss, as a part a comprehensive Family Estate plan for $150 or independently for $350. So before the summer months slip away and you find yourself sending your child off on their next great adventure, take the time to discuss with them the importance of taking care of their legal lives.
And it makes a very practical gift!
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