College Protection Plan

The rules change completely once your child turns 18. They may still be financially dependent on you, but they’re an adult in the eyes of the law. You may have read about this issue in Forbes Magazine a few years ago in an article titled Two Documents Every 18-Year-Old Should Sign. The two documents that are part of the College Protection Plan, are a Durable Power of Attorney and a Health Care Surrogacy that contains a HIPAA Release.

A. HIPAA Release

One of the laws that now affects your child is called HIPAA. This is a federal law that protects the privacy of patients. While that’s usually a good thing, it could be disastrous for you and your family if your child is hospitalized while at school. That’s because in this situation, “protecting” your child’s privacy actually means preventing their doctor from sharing information with you.

Once your child turns 18, it is illegal for a doctor to discuss their medical conditions with you—even during a life-threatening emergency. Even if you’re still paying the bills. Avoid this with our College Protection Plan.

B. Durable Power of Attorney

A Durable Power of Attorney (“POA” for short) enables parents to access and manage their child’s finances. The Durable POA, as part of the college protection plan, can be useful in many situations. If, for example, you child has a car accident or falls ill, or attends a semester abroad, he or she will be left without the ability to make financial decisions. If bank accounts, a car, a rental agreement, lease or other assets are titled in the name of the student, the POA avoids the expensive and drawn-out court process of having to be appointed guardian by the court for your own child.

The POA can be useful as it allows parents to act on a child’s behalf on all financial matters or set limits for financial circumstances. The POA also helps if your young adult has an overdrawn bank account and isn’t addressing the issue in a responsible manner.