Title: College Students Need Estate Planning, Too
Title: College Students Need Estate Planning, TooFrom life insurance to granting power of attorney, there’s a lot to cover when it comes to Minnesota estate planning for college students. For those new to what estate planning law is all about, it centralizes on preparing for your passing or for when you become incapacitated. Both of those events probably sound far off to you if you’re just starting your freshmen studies and hopefully, they won’t happen for quite some time. That said, consider this article as your introduction to estate planning as a young adult.
If anything, internalize that your parents probably don’t have as much authority over you anymore. That’s good, yes, but you may want them still to make the best decisions for when you become incapacitated. Otherwise, you may want someone else, a best friend for example, to make the decision that your parents would have made for you. It’s best that you set things in place as times have changed in your world.
Healthcare Agent
Your family and friends may have the best intentions for you when it comes to your health. That’s great. The concern here, though, is if your health goes south, one of them might not get access to the medical documents they need. Drawing up a healthcare proxy lets someone that you trust get access to your medical history to make an educated guess and the power to act on that knowledge. If something happens to you, they can tell the doctors how to assist you.
There’s a small catch, mind you. You can only nominate one person as a representative. So, you can’t have a married couple teaming up to help combat your illness. Thankfully, a loophole exists. When the person you first had appointed can’t help you, someone who was nominated by you as a backup representative can fill their shoes. Consider adding your parents, spouse, significant other, or best friend. It will give them more freedom to assist you.
POA for Loans
Student loans is a phrase which you probably don’t want to hear. Consider, nonetheless, of what might happen to them if you became incapacitated. Not just in the sense of not being able to work, but potentially losing the physical ability to communicate with anybody. The classic example is being in a coma, where someone gets in an unexpected accident, resulting in them not being able to maintain gainful employment or say the simplest of sentences.
Don’t forget that even when you become unable to do anything, your student loans might keep growing. By granting durable financial power of attorney, you get to set someone that you trust to make money-related decisions on your behalf. They can talk to anyone that they need to about your student loans and other expenses. They can also help out by taking care of your property.
Living Will
Wills aren’t just for your beneficiaries’ benefits. A living will is one of the best tools for outlining how you want to be cared for in your last moments on earth. While your family may never want to be put into a position of using this legal document, it’s wise to have just in case. It helps them and the doctors know how you want to be treated before you pass. Should you go into a critical stasis, the information found inside your living will may become vital.
Think of your living will as a kind of backup or an immortalized version of the person who has medical power of attorney over you. Both can work together, but keep in mind that someone who has medical power of attorney may lose their powers when you become incapacitated if they aren’t given durable powers. A living will might be the only thing your family has to go on in that case. You may even want to prioritize having a living will over granting durable medical power of attorney lest your health turn south.
Insurance for Debt
Life insurance policies are generally nice things to have around. Though you probably can’t borrow against your insurance policy immediately, there’s the chance that you can use it to combat your student loans later on. Be wise with how you use the policy as it may negatively affect any beneficiaries attached to the policy. Whatever money you take out now may affect how much they can take out later.
The main reason you should seek out a life insurance policy is to help cover the loss of income your passing may bring. Budgeting is a must. Your spouse might not be able to fill the void without your income. And that’s not even touching on all the emotional and psychological elements that can come into play. Estate planning is about looking at the big picture now and later on. You might be a broke college student now, but consider what life is like once you’re the father of three and upgrading your house. That money may do wonders.
Minnesota Estate Planning Lawyers
Aside from your current college professors, it might be wise for you to get another teacher, one that doesn’t work in semesters or quarters. Estate planning law might not be your best subject, but that doesn’t mean that you can’t get a head start on learning the coursework. For a safe learning route, connect with someone at Flanders Law Firm LLC by calling 612-424-0398.
Whether you’re just doing some things to prepare for a health care crisis or you want to start getting your beneficiaries in order, they’re there to help. Keep in mind that estate planning can be a lifelong venture. Relationships change over time and you’re going to make more and more as time goes forward. Start early and anticipate later growth.
Sources
https://burnerlaw.com/estate-planning-for-college-students/
https://uniqueestatelaw.com/2020/09/25/estate-planning-documents-to-protect-your-college-student/
https://www.masonfinance.com/blog/life-insurance-to-pay-off-debt/