Necessary Legal and Financial Documents

There are a few legal and financial issues that should be addressed before your son or daughter goes off to college. If your child has turned or will turn 18 during the next year, s/he is legally an adult, and you, the parent, lose the legal authority to make decisions on their behalf. That means that you have no legal right to see college grades, to manage their finances (although you remain responsible for tuition costs), or to make medical decisions or speak with their doctors. So, before s/he goes off to college, consider having your child sign some documents that will keep them safer and you informed.

• FERPA release: with your child’s permission, you can speak with the college about his/her performance. Colleges often have their own FERPA release forms, which may be available online.

• HIPAA Authorization: allows you to access your child’s health records and speak to his/her doctors about medical issues and care.

• Advance Care Directive for Health Care: allows you to act on your adult child’s behalf in the event that s/he is incapacitated and unable to make decisions.

• Durable Power of Attorney: allows you to act on your adult child’s behalf regarding legal or financial matters. This is especially helpful if your student is studying abroad as you will be able to sign their tax returns and residential leases.

The last three forms are available online and can be downloaded for free. If your student will be attending school out of state, make sure to use the appropriate HIPPA Authorization as requirements can vary from state to state. All three of these documents need to be notarized. Each of these forms can be revoked at any time, but having them in place while your child is away at college may provide the whole family with extra peace of mind.

This is also a good time to address money management issues.

• Set up a bank account that will allow you to easily transfer money to your child’s account. An online bank account may be the most useful, especially if the bank has special student accounts available that will give parents access to bank information. Find out which banks have ATMs close to campus—college kids usually don’t write many checks. Be sure to check on fees for using an ATM that’s not part of your bank’s network.

• Make plans to protect student property. College kids tend to have a lot of valuable electronics and computer equipment. Renter’s insurance can protect your investment if these items were to disappear. Your homeowner’s policy might also cover dorm room possessions—check with your agent.

• Health insurance: check out options provided by the college and compare these policies with your existing family medical coverage.

• Car insurance: check with your agent. If your child will not have a car at college, you may be eligible for a discount on your auto rate.