Got a kid headed to college? Don't forget the power of attorney. Here's why you need it.
Every incoming college kid needs linens, toiletries, books, and computers before they arrive on campus.
Every parent needs a signed power of attorney before they kiss their teen goodbye.
A power of attorney, or POA, is a legal document every parent should have their 18-year-old sign that would give the parent immediate authority to access medical and financial information and handle those issues on behalf of the teen.
Without a POA, parents may not be able to help their kids if they need help. Even if parents still view their 18-year-olds as their babies, the law sees them as adults. And under privacy laws, parents will no longer have the right to make medical or financial decisions on behalf of the teens, regardless if the parents pay tuition, carry their children on their medical insurance, or provide other financial assistance.
Sheri Warsh, trusts and estates partner at Levenfeld Pearlstein law firm in Chicago, remembers when her son was away at college and taken by ambulance to a hospital because of sharp pains.
“I called from home and said 'I need to talk to the doctor,'” she recalled. “'My son’s on the way there, and I need to know what’s going on,'" she said. "They asked, 'Is he 18?' I said, 'Yes.'"
When they asked if she had power of attorney and she answered no, they said, "We can’t talk to you."
"Since then," Warsh continued, "it’s been my mission to make sure people know how important it is.”
When does a POA come in handy?
The two major times a POA would be helpful during college years (and maybe for a while beyond) revolve around health care and financial issues.
Normally, POAs allow someone to make decisions on your behalf if you become too ill or are otherwise incapacitated and can't make those decisions on your own. But parents need these effective immediately.
◾ Medical: As a parent, you’ll want to make sure your POA has a Health Insurance Portability and Accountability Act, or HIPPA, clause that specifically covers protected health information. This information encompasses health status, provision of health care, or payment for health care that is created or collected by an entity and can be linked to a specific individual. Protected health information access will also allow you to follow up on health care items, such as transferring files or requesting copies of X-rays to at-home doctors.
◾ Financial: Allows a parent to conduct financial matters such as student loans or investment accounts, without the teen being present. It also allows parents to access a college-age child’s bank account, receive and pay tuition bills and even help resolve issues the teen could be having with an unscrupulous landlord, credit card, or cable company, Warsh said.
What is a FERPA release?
Family Educational Rights Privacy Act, or FERPA, prevents parents from accessing their teen’s education records when the kid turns 18.
Some POAs include language that includes student education information protected under the FERPA, but not all of them do. So, it’s important for families to sign the FERPA release with their child’s school to ensure parental access to grades, related financial bills, records, and even the ability to speak with teachers and counselors.
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How do you get a POA and when should it be signed?
You can see an attorney for expert advice to make sure every situation’s covered, otherwise, you can find POAs free online. They vary by state so find one for the state you and your family live in. Depending on where you live, you may need to sign before a witness or two and a notary. Warsh also recommends not waiting, either.
"Just say 'Happy birthday! Now sign this power of attorney," she said and hand it over.
For FERPA releases, ask your child’s school. Schools have them but may not emphasize or facilitate them to families, Warsh said. Some may even require you to sign a new form every semester but won’t remind you, she said. It’s up to families to keep atop the release’s effective dates.
“You have to be proactive,” Warsh said. “The schools make it very difficult because they don’t want parents involved. They don’t want to talk to you.”
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at[email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday.