When you turn 18, you legally become an adult in Texas. With this major milestone, you gain new freedoms and responsibilities. Suddenly, you can vote, marry, open your own bank account, sign contracts, and enlist in the military. You are also legally independent from your parents. This means they can no longer access your medical records, manage your finances, or make critical decisions on your behalf. You are now in charge of your life, and with that comes the need to think about your future and protecting yourself in ways you might not have before. Below, our Texas estate planning lawyers answer the critical question, “What legal documents should an 18-year-old have?”
Essential Legal Documents for an 18-Year-Old
Lacking essential estate planning documents can leave your parents or loved ones in a bind, unable to assist you with medical or financial matters in an emergency. Setting up certain documents can ensure that the people you trust can advocate for you and make decisions on your behalf if needed. We recommend having a simple estate plan that contains the following documents:
- Medical power of attorney
- HIPAA release
- Financial power of attorney
- Last will and testament
Medical Power of Attorney
A medical power of attorney is a legal document that allows someone you choose to make healthcare decisions on your behalf if you cannot. This person is a medical agent.
This document becomes critical if you are unconscious, severely injured, or incapacitated due to illness. Your medical agent will be able to talk to your healthcare providers and make medical treatment decisions for you.
You can designate one or more people you trust to be your medical agent. Whether you choose your parents, or another loved one, a medical agent can advocate for you when you cannot advocate for yourself.
HIPAA Release
Once you turn 18, your medical information becomes protected under the Health Insurance Portability and Accountability Act (HIPAA). Without your written authorization, your healthcare providers are legally prohibited from sharing your health status, treatment recommendations, or medical records with anyone, including your parents.
Unlike a medical power of attorney, a HIPAA release grants no decision-making powers. Instead, it allows the individuals you select to talk to your healthcare providers and access your medical records. This access can become critical in medical emergencies, like if you are unconscious or incapacitated, where informed decisions about your health must be made.
A HIPAA release is critical if you want someone you trust, like your parents or another loved one, to be informed about your health and involved in a medical emergency. However, a HIPAA release does not have to be all-inclusive. Depending on your comfort level, you can grant broad access to your medical information or limit it.
Financial Power of Attorney
A financial power of attorney is a legal document that allows you to designate one or more people to manage your financial matters if you cannot do so yourself. Generally, it allows someone you trust to help you with financial tasks. For example, your financial agent may be able to do the following on your behalf:
- Access your bank accounts
- Pay your rent and utility bills
- Pay any other bills you have, such as a car loan, credit card bills, or student loan bills
- Renew your car registration
- File your taxes
- Make financial decisions
You can choose when a financial power of attorney goes into effect, whether immediately, which may be helpful for convenience, or only in the event of incapacitation. You can also limit or expand your agent’s powers and change or update the document at any time when you have a sound mind.
Why is establishing a financial power of attorney important? Without one, in the event of incapacitation, your parents or loved ones would have to go through a lengthy court process to get guardianship rights and the authority to manage your finances. In the meantime, your financial obligations may go unmanaged, leading to serious consequences. For example, you could face late fees, eviction, and credit damage.
Last Will and Testament
A will is a legal document that outlines your wishes regarding the distribution of your assets and belongings after you pass away. It may seem premature to think about a will at 18. However, having one can benefit anyone, regardless of age or assets. You may find that you have possessions of sentimental or even monetary value that you want to leave to certain people.
If you pass away in Texas without a will, state law determines how to distribute your estate. State law may not align with your wishes. You can provide clear instructions for your assets and property by creating a simple will.
Keep in mind that once you establish a will, you can modify it as needed when significant life changes occur or as your assets grow. You should revisit your estate planning documents every couple of years to ensure the documents continue to meet your needs.
Create a Simple Estate Plan Using Our Estate Plan Express Service
As you navigate the new freedoms and responsibilities of adulthood, it is essential to take proactive steps to protect your future. That is where our Estate Plan Express service can help.
Our online will service streamlines the process of creating the essential legal documents every young adult in Texas should have. Our service includes a medical power of attorney, a HIPAA release, a financial power of attorney, and a will.
You can get a simple estate plan prepared by our experienced Texas estate planning lawyer from the comfort of your home. You can answer and submit a guided questionnaire using our user-friendly online estate planning portal. From there, our attorney will draft and review your documents.
At Warren & Migliaccio, we provide a range of estate planning services tailored to accommodate the varying needs of our clients. If your estate planning requirements extend beyond a simple will, or if you prefer a more personable and hands-on approach from your attorney, our White Glove or Everything but the Execution services might be the perfect fit for you.
Start your online will package, or contact us if you have questions about preparing an estate plan. We are happy to answer your legal questions and discuss how we can help you. Call us at (888) 584-9614 or contact us online to schedule a consultation.
