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High School Graduation is a Time to Celebrate

| April 10, 2019
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BUT IT’S ALSO A TIME TO DO SOME LIFE-PLANNING

The spring ritual of high school graduations is here. But graduates and their parents often are poorly prepared to meet the practicalities of the youngsters’ sudden entry into adulthood, from making medical decisions to choosing what to study. How should parents and their offspring get ready for the transition?

Amid the joy of the occasion, facing such practical concerns is easily overlooked. The entrances to many housing subdivisions sport banners trumpeting the names of the community’s high school graduates. For parents and grandparents alike, it’s an exercise in wondering how little ones grew up so fast. Grow they did, and grow they will. But as they celebrate their 18th birthdays, we hope and pray that they will advance in wisdom and make good choices in life.

From a financial planning standpoint, they still depend largely on the Bank of Mom and Dad. Recognize, however, that the law now views many of them as adults. In 46 states, the age of majority is 18. In six states, legal adulthood commences at 18 or upon graduation from high school, whichever is sooner. In Alabama, Delaware and Nebraska, the threshold age is 19 in Mississippi, 21.

As an adult, your graduate should have a will, even if he or she owns very little. Otherwise, in the event of a fatal accident or illness, the legal process (called an intestate proceeding) to sort out who gets the deceased’s belongings is heartbreaking and irksome.

Once young people are deemed adults, health-care providers will not share medical information with parents. That’s unless a parent has a durable power of attorney for health care, signed by the adult child, appointing mom, dad or both as their agent empowered to make medical decisions if they cannot.

The 1996 Health Insurance Portability and Accountability Act (HIPAA), bars doctors, hospitals and other health-care providers from disclosing information about a person’s health or medical condition without express permission.

Your relationship to the patient is irrelevant. Unless you have a power of attorney with HIPAA provisions, no health information will be shared. Without documentation, a sick or hurt adult child away at school or traveling on a break has a problem: Parents could encounter potentially disastrous delays in getting proper care.

THOUGHTS FROM A FINANCIAL ADVISOR

Like all financial decisions, the more you plan your trip, the more successful your journey. I look forward to discussing how I can help prepare your recent graduate to be the most successful they can be.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

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