Peace of Mind for Parents and Students: Why a Power of Attorney is Crucial for College
Sending a child off to college is a milestone filled with excitement and a long to-do list. While you’re busy packing dorm essentials and discussing class schedules, there’s a critical legal step that many families overlook: a Power of Attorney (POA). Once a child turns 18, they are legally an adult, and parents no longer have automatic authority to make financial or medical decisions on their behalf, regardless of who pays the tuition bill. In this article, the Michigan Estate Planning Attorneys of Thompson Legal we will explore the two essential power of attorney documents every college student should have and why they are so important.
Please note that this post is not exhaustive, and every situation is unique. In the event that you have legal questions it is advisable to speak with a licensed attorney. Contact Thompson Legal to speak with a Michigan Estate Planning Attorney today.
Understanding Power of Attorney in Michigan
When your child turns 18, federal and state privacy laws prevent you from accessing their protected information, including medical records and financial statements. This can become a nightmare in the event of an emergency. If your student becomes incapacitated due to an illness or accident, you may be unable to speak with doctors, manage their bank accounts, or even handle their tuition payments without a court order.
A power of attorney is a legal document that allows your student (the "principal") to designate a trusted person (the "agent") to act on their behalf. In Michigan, there are two primary types of power of attorney documents crucial for college students.
Financial Power of Attorney (FPOA)
A Financial Power of Attorney grants a designated agent the authority to manage the principal's financial affairs. For a college student, this isn't typically about managing vast estates, but rather about practical, necessary tasks. An FPOA can be structured to be "durable," meaning it remains in effect even if the principal becomes incapacitated. It can also be effective immediately upon signing or "springing," meaning it only takes effect upon the documented disability of the principal. However, it's important to note that financial institutions can be hesitant to accept springing powers due to the need for proof of incapacity.
Medical Power of Attorney (Patient Advocate Designation)
In Michigan, a medical power of attorney is formally known as a Patient Advocate Designation. This document allows an individual (the "patient") who is of sound mind and at least 18 years old to designate a "patient advocate" to make medical and mental health treatment decisions on their behalf. This power is only triggered when a physician determines that the patient is unable to provide informed consent for their own care.
Important Considerations for a Student's Patient Advocate Designation:
HIPAA and Medical Privacy: The Health Insurance Portability and Accountability Act (HIPAA) prevents healthcare providers from sharing a patient's medical information without their consent. A Patient Advocate Designation, combined with a specific HIPAA release form, is essential for a patient advocate to communicate with doctors and access medical records.
Mental Health: College can be a stressful time, and some students may face mental health challenges. It is crucial to include a specific paragraph authorizing the patient advocate to secure mental health services, as many providers will not act on a general MPOA in a mental health crisis.
Life-Sustaining Treatment: The document must contain clear and convincing evidence that the patient gives the advocate authority regarding life-sustaining treatment, acknowledging that this could result in the patient's death. This can be a difficult conversation, but it is a necessary one.
Distribution: Copies of the executed Patient Advocate Designation should be given to the primary patient advocate, the student’s primary care physician, and the college or university's health center. If the student is an athlete, the athletic trainer and team doctor should also have a copy.
Choosing Your Agent and Patient Advocate
The person calling an attorney to set up these documents is often the parent, but it is the student who is the client. The student must be competent at the time of signing and freely choose who they want to appoint. While parents are a common choice , the student might choose another trusted adult, like an older sibling or another relative. The key is to select someone who is trustworthy, responsible, and capable of handling difficult decisions during a crisis.
Conclusion: Secure Peace of Mind Before They Leave
Preparing your college-bound student with a Financial Power of Attorney and a Patient Advocate Designation is a proactive step to help secure their future. These documents provide a critical safety net, ensuring that if a crisis occurs, a trusted individual has the legal authority to step in and manage their affairs without the delay and expense of court proceedings. By having these conversations and putting a plan in place now, you can secure peace of mind for your entire family. To discuss creating these essential documents for your student, please Contact Us to schedule a consultation.
This article is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with an Estate Planning Attorney, please Contact Thompson Legal at (734) 743-1646 to schedule a consultation.
