How Powers of Attorney Can Help Students and Parents as College Starts
By: Mary Kathryn Charlton, Attorney
Cindy S. Smith, P.C.
It’s that time of year again – college move-in dates are just around the corner. While this can be an exciting and nerve-wracking time, one legal tool can help streamline the process as kids leave the nest and as parents help their children navigate this newfound independence from afar: Powers of Attorney.
Many college students are at least 18 years old, and while they have only recently left home, these students are legally adults – which means that mom and dad no longer have a right to access all of their child’s records (including grades, financial records, and medical records).
If a student wants to enable mom and dad to make decisions for the student and to access grades, financial data, and healthcare data, then the student should have a Power of Attorney prepared and executed – giving mom, dad, and/or another trusted adult authority to do so (or, in other words, appointing this other adult as the student’s “attorney-in-fact”).
There are 3 different documents that we are going to discuss here that can help students and parents/guardians navigate this new stage in life. They are a Durable General Power of Attorney, a Durable Limited Power of Attorney, and a Durable Power of Attorney for Healthcare.
To walk through these documents in our student-parent scenario, we are going to discuss a hypothetical 18 year old college freshman named Debbie and her parents, Martha and Fred.
Durable General Power of Attorney
A Durable General Power of Attorney (“DPOA”) will normally cover financial access and rights. A DPOA will usually authorize the attorney-in-fact to act as if the attorney-in-fact were the signer. It’s “durable” because, if the signer is later deemed to be incompetent (such as from a catastrophic medical issue or accident), then the Power of Attorney is still effective (e.g., the Power of Attorney “endures”).
In our first hypo, Debbie is going to college, but she wants to give both of her parents the ability to help her with any financial matters back home – like being able to pay doctor bills, make car payments on the car she just bought, etc., from her bank accounts. Debbie trusts both of her parents explicitly, and she is fine with them having access to all of her financial information. Debbie should execute a Durable General Power of Attorney naming both Martha and Fred as attorneys-in-fact, giving them full access to her financial data and giving them the authority to act as if they were Debbie.
Durable Limited Power of Attorney
A Durable Limited Power of Attorney is generally a more customized document which only grants certain authority to the attorney-in-fact. For example, the signer only wants to give the attorney-in-fact the right to sign checks below a certain dollar amount.
In our second hypo, Debbie is heading to college, and while she trusts her mom and dad, she doesn’t want them to be able to empty out her checking account. She only wants them to be able to write checks (or otherwise make payments) below $100. In this hypothetical, Debbie should sign a Durable Limited Power of Attorney giving Martha and Fred the authority only to make payments below $100.
Durable Power of Attorney for Healthcare
A Durable Power of Attorney for Healthcare gives the attorney-in-fact the right to make healthcare decisions for the signer, when the signer is unable to do so. This document will also give the attorney-in-fact the right to access the signer’s medical records – effectively overriding HIPAA/patient privacy.
In our third hypothetical, Debbie is heading to college in another city, but she will still have doctor relationships back home. She wants her mom and dad to be able to access her records back home (and her records with medical providers at/around the college). She also wants them to make medical decisions for her if she was not able to do so. Debbie should sign a DPOAH naming Martha and Fred.
Closing Thoughts
Thanks for reading through these quick summaries of the different type of documents that can help students and parents/guardians as young adults transition from being at home to being at college – but the above are just generalized descriptions. These documents can be customized and tailored for your unique situation. They can even be limited to be effective only for a certain amount of time. Also, depending on the institution, some institutions (such as hospitals, etc.) may require special forms to be signed.
Contact our office today to discuss options and to see if any of these options are a good fit for you.
(c) Cindy S. Smith, P.C./Mary Kathryn Charlton, 2023
This information is not intended to be legal advice and is provided for general informational purposes only. This information should not be construed to be legal advice, and use of this information/website does not cot create an attorney-client relationship.