Legal documents you need to sign once you turn 18 | Family finances

Turning 18 is an exciting moment in a teenager's life. It marks the transition to adulthood, with newfound independence from a legal perspective.

But while adulthood brings freedom, it also comes with important responsibilities. First, it is no longer up to parents to decide what to do with their new adult's finances, medical care, and property.

With this in mind, there are several legal documents that 18-year-olds can benefit from signing, including powers of attorney and health care powers of attorney.

If you are the parent of a teen who is approaching adulthood, you can set your child on the path to success by encouraging them to put these safety nets in place in case of an emergency.

“Turning 18 brings newfound independence and responsibility. Many people associate legal preparation with later in life, but there are important documents young people should consider signing at this age.” Justin Stivers, owner and founding attorney of the Stivers Law Firm in Coral Gables, Fla., said in an email.

Probably, most teenagers do not think about what will happen if they are involved in an accident or worse. Still, when you grow up, it's important to deal with emergencies like this.

If a child is under 18, a parent or legal guardian has the legal right to make important decisions about the child's health care and finances. However, once that threshold is reached, the parent no longer has those capabilities by default. If there is someone in your life that you want to manage your legal decisions, you need to put it in writing.

“If you do not have these documents, your family may end up with a court-appointed guardian to make these decisions on your behalf. The person could be a family member, or it could be a voluntary guardian. Everyone wants to escape guardianship and be stripped of their rights. Make sure you have these documents in place. “It's a good step to avoid that,” Stivers said.

As soon as you turn 18, consider preparing the following four documents:

No one wants to imagine being in an accident and not being able to make medical decisions for themselves, but it can happen to anyone.

David Handler, a partner in the trusts and real estate practice group at Kirkland & Ellis in Chicago, says health care representation is the minimum legal insurance you should have once you turn 18.

“Otherwise, if the boy has a medical problem, doctors will not share information without verbal consent,” Handler said in an email.

This document designates another individual who can make medical decisions if you are incapacitated and unable to communicate your wishes.

Another legal document you should consider signing is a power of attorney (POA). This is especially helpful for financial decisions, especially for teens, since they are just learning how to manage money.

“If teens are unable to do so, they should also consider implementing a power of attorney for property, which allows a parent or other person to handle financial matters and sign tax returns. of young people going to college,” Handler said.

Powers of attorney are typically associated with making financial decisions for older adults who have become incapacitated due to illness or other circumstances, but they can be useful in many situations.

“A power of attorney is not only useful in scary situations such as an accident, but it may also be needed if a young person is studying or traveling abroad and needs to take legal action upon returning home.” Stivers says.

In some cases, teens may not want to hand over health care power of attorney to their parents, but may still want to specify their wishes in case of health-related emergencies. That's where Living Will comes in handy.

A living will, unlike what most people think of as a last will, is a document that tells your doctors that at least two doctors have determined that you do not have a meaningful life and do not want to be placed on life support. Stivers says he will remain in a vegetative state.

“Some people would prefer to make this decision themselves rather than having someone named in a health care power of attorney make that decision for them,” he added.

It's unlikely that a teenager who just turned 18 will have large assets to distribute if something were to happen, but it may be a good idea to have a basic will in place. yeah.

“Otherwise, state law would likely leave the assets to the parents, otherwise to the siblings,” Handler said.

Your legal representative can help you decide what to include in your will. Also, if you create a legal representative from a young age, when your assets increase or you experience major changes in your life, you won't have to spend time creating a will and can easily change it. can do. future.

Legal documents are definitely the last thing on a teenager's mind. But having these policies in place for emergencies can help make your adult life a lot smoother if something were to happen.

If you're a parent of children who are entering adulthood, it's important to help them through the process by showing them why these documents are worth their time.

“Explain to them that they are now legally an adult,” Handler says.

“Their actions have consequences and they don't get a 'break' because they're only 18 years old. Medical and financial institutions have to treat them as adults, so they don't get a 'break' because they're only 18. “If you want someone to help you with their affairs, they will need “to prepare a power of attorney,'' he added.

Stivers said this was not intended to scare children, but rather to show that these things actually apply to children.

“Parents may not necessarily want to scare their children, but real-life examples can go a long way in helping young adults understand that it can happen to anyone,” he says. says.