Singles

When children reach the age of 18, they are often going away to college or beginning part-time or full-time work. As such, the state considers them adults in almost every respect. In this regard, most estate planning attorneys would recommend health care powers for those young adults, naming the parents as those who will direct health care decisions if the young adult is temporarily unable to make those decisions.

Another issue for young adults is ownership of accounts that may have been set up as “UGMAs” – accounts for minors over which the parents previously exercised authority. If parents and grandparents have gifted generously, it is possible for these young adults to have an account of considerable value available at a very young age. You may have provided the correct ownership form for a minor, without realizing it is the wrong form of ownership for a young adult, because unless you provided otherwise, you will be releasing these accounts unrestricted at age 18. In such instances, some estate planning attorneys would recommend a revocable living trust for their young adult children. Some WealthCounsel attorneys use what they call a “Young Adult Trust” which is a revocable trust with ancillary documents to function as a “beginner’s trust” under the direction of loving, responsible parents.