Important Financial Considerations as You or Your Child Becomes of Legal Age

It happens much faster than anyone expects. Whether you’re about to turn 18 or the parent of a soon-to-be teenager, there are a few important key items you need to consider to prepare for financial success and security.

Power of Attorney

Upon reaching 18, financial institutions and universities will no longer share information with parents, despite the fact that they may still be financially dependent. A power of attorney document alleviates this problem by allowing parents the ability to make financial decisions on behalf of their adult teenager. The document also enables parents to open and close bank accounts, negotiate contacts, establish an IRA and, most critically, help with everyday financial needs – including navigating the financial complexities of college.

An Advanced Healthcare Directive

This directive authorizes someone to make medical decisions on the behalf of another. In the case of a recently turned 18 year old, it empower a parent or other to access you medical records and communicate with a health care provider. Without this permission, a doctor or medical professional cannot discuss a young adult’s healthcare with their parent.

New Responsibilities

Becoming a legal adult comes with several new responsibilities. In addition to the civil responsibilities that include the right to vote, jury duty and registering for the Selective Service, 18 year olds have the ability to sign legally binding contracts and, through a cosigner, obtain a credit card. For many, the looming threat of financial trouble lingers large, especially if there’s any withholdings and filing. It’s important that young adults understand the importance of making smart financial decisions and the tax responsibilities.

The KIG team understands that the excitement of turning 18 and becoming a legal adult can overshadow financial preparedness. We’re here to help ensure the transition is seamless for both young adults and parents.

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