At one time, becoming 18 or 21 meant charting your own path in the world - building careers, starting families, and developing financial independence. Today, however, a mix of economic, social, and technological forces have converged to reshape young adulthood. Starting with rising housing costs, the journey into full adulthood is much more gradual, while some adult children do not ever fully “launch.”
By understanding and addressing the needs of your adult children, you can make a tremendous difference in protecting both their future and yours.
1. Newly Over 18: Preparing for Early Adulthood
Now that the child is an adult in the eyes of the law, parents and children should prepare for unexpected situations.
Power of Attorney (POA): With a POA, parents can act on behalf of their adult child in managing finances or handling other legal matters if the child is incapacitated or otherwise unable to do so.
Health Care Proxy: A health care proxy allows parents to continue to make critical healthcare decisions for their child if the newly adult child so desires and is unable to. Did you know? Without a healthcare proxy if their child ends up in the hospital at age 18, you might not be allowed to make health decisions or visit. You may pay tons to the college in tuition, but without a health care proxy they are unlikely to call to tell you they’ve moved your child to the hospital!
Simple Will: While it may seem early, the child may have preferences, even if both their possessions and chances of early demise are limited.
► Bonus Tip: For children in college, parents and children can discuss whet her they need or want a FERPA release, which allows access to educational records.
2. Independence: Managing Life’s Complexity
As adult children become more independent, new situations arise that may require legal protection. Some adults still marry early, while others share with friends for years or co-habitat with a partner. For the latter case, has your young adult considered a cohabitation agreement?
As relationships deepen, some adult children marry a partner who brings their own complexities, such as stepchildren or significant financial assets. In these cases, have you counseled your child to consider a prenuptial/postnuptial agreement? These agreements, along with a thoughtful approach to finances, may clarify expectations and protect both partners.
3. Supporting Special Circumstances and Setting Boundaries
Some adult children continue to rely on their parents due to special needs, limited/no income, or other personal circumstances. While each family’s situation is unique, establishing legal structures can help maintain a healthy family dynamic.
For families providing ongoing support to adult children, you should have long-term care plan in place for financial management and healthcare decisions. This can include naming a trusted family member or friend as a successor trustee or health care proxy as parents age. Special Needs Trusts can be a subset of your long-term care plan. If an adult child has a disability or special needs that make independence unlikely, a special needs trust can provide financial support for the child without creating undue financial strain on the parents.
By proactively addressing needs at each of these three stages, you can support your adult child while maintaining healthy boundaries and preparing for the future.
OUT IN THE COMMUNITY
The team at Michael J. Greenberg, P.C. looks forward to working with our clients and colleagues for a successful 2025!
Pictured at our holiday celebration at Bobby Van's Steakhouse are (left to right): Paralegal Shayanne Washington, Paralegal Dafne Polanco, Attorney Michael Greenberg, Associate Attorney Kevin Lynch, and Paralegal Chelsea Alvarez.
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