Founder
If you’re 18 or older and heading off to college, you should consider signing a durable power of attorney. Estate planning may not be high on your back-to-school checklist. You’re probably more concerned with registering for classes, buying textbooks, decorating your dorm room, or figuring out your new schedule.
But there is another important item you should consider before leaving home: a Durable Power of Attorney.
Turning 18 means you are legally an adult. Your parents may still help pay your bills, manage certain aspects of your finances, or provide financial support. However, they do not automatically have the same legal authority that they had when you were a minor.
A Durable Power of Attorney can help you plan for an unexpected situation in which you cannot handle your own financial or legal affairs.
What Is a Durable Power of Attorney?
A Durable Power of Attorney is a legal document that lets you appoint another person to act on your behalf in financial and other legal matters.
The person creating the document is generally referred to as the “principal”, while the person appointed to act on their behalf is the “agent” or “attorney-in-fact”.
Massachusetts General Laws Chapter 190B, Article V, Part 5 explains the legal framework for durable powers of attorney. Massachusetts law provides that a power of attorney can be durable, meaning the agent’s authority continues even if the person who created the document later becomes incapacitated.
The exact authority granted to an agent depends on the contents of the legal document you sign. That is why it is important to understand what you’re signing and to work with an attorney when preparing a Durable Power of Attorney.
Why Would a College Student Need a Power of Attorney?
You might think that you won’t need a Durable Power of Attorney until you are much older. But incapacity can happen unexpectedly, including as the result of an accident or serious illness.
Imagine that you’re attending college several hours away from your family and are temporarily unable to manage your financial affairs. Maybe you suddenly become seriously ill or suffer an accident that prevents you from dealing with finances. You probably will still have rent or housing expenses, bills, bank accounts, insurance matters, or other financial responsibilities that need attention.
Your parents cannot necessarily step in simply because they are your parents. Once you are 18, you are an adult and generally control your own financial affairs. A properly prepared Durable Power of Attorney gives you an opportunity to decide in advance who you trust to help if you cannot manage those matters yourself.
You Choose Who You Trust
One of the most important aspects of a Durable Power of Attorney is that you get to choose your preferred agent.
You might choose a parent, another relative, a “chosen family” member, or another person you deeply trust. The important thing is that you understand the authority you are giving that person and feel comfortable with them handling your affairs if necessary.
You should also talk with the person you are considering naming as your agent. During the conversations:
- Make sure they understand your wishes.
- Ensure they know how to reach you (or others you trust) in an emergency.
- Tell them how they can access your important financial information if an emergency occurs.
- Provide them with a copy of the Durable Power of Attorney once you have signed it.
A Massachusetts estate planning attorney can explain the options available and help you decide how broadly or narrowly to draft the document.
What Happens Without a Power of Attorney?
Without a Durable Power of Attorney, your family may face additional legal complications if you become unable to manage your finances.
Depending on the circumstances, someone may need to pursue a court proceeding to obtain authority to manage certain aspects of your affairs. The process can take time and may create additional expense and stress for your family. Additionally, your bills may go unpaid for a time while your family seeks court permission to access them, which could lead to additional interest charges or collection proceedings.
Planning ahead allows you to make these decisions while you are able to do so rather than leaving your loved ones to figure everything out during an emergency.
Don’t Confuse a Power of Attorney with a Health Care Proxy
A Durable Power of Attorney and a Massachusetts Health Care Proxy serve different purposes.
A Durable Power of Attorney generally concerns financial and legal matters. A Health Care Proxy allows you to appoint someone to make health care decisions for you if you become unable to make or communicate those decisions yourself.
If you are 18 or older and preparing to leave for college, you may want to discuss both types of planning with your parents and an estate planning attorney.
Frequently Asked Questions
Does a Durable Power of Attorney mean that my parents automatically control my money?
No. You choose whether to appoint an agent, who the agent is, and the authority granted through the document. A Durable Power of Attorney is intended to provide another person with authority to act on your behalf under the circumstances and terms established by the document. You do not need to choose your parents as agents, and they will not automatically have control of your money without your permission.
Can I create a Durable Power of Attorney before leaving for college?
Yes. Massachusetts law allows students over age 18 to establish a Durable Power of Attorney at any time. Because the document can give another person significant authority, it is important to understand its terms and have it prepared properly. It’s a very good idea to speak with a lawyer who can help you prepare a Durable Power of Attorney.
Get Your Massachusetts Estate Planning Documents in Order
If you’re 18 or older and heading off to college, don’t overlook the legal side of becoming an adult. Taking a little time to consider a Durable Power of Attorney now can help you prepare for an unexpected situation and decide who you trust to assist with your affairs if you cannot manage them yourself.
Patricia Bloom-McDonald, a Massachusetts estate planning attorney, can help you understand your options and determine whether a Durable Power of Attorney is appropriate for your circumstances. Call our Westport, MA office or fill out the contact form on our website to schedule a consultation.