Financial Power of Attorney for Your Adult Child

Many people have children on the cusp of turning 18 and some have already hit this landmark birthday. It’s such an amazing milestone to celebrate that it may leave you wondering how the years flew by so quickly. 

But just because your child is now officially an adult doesn’t mean they aren’t going to want or need your financial guidance or help. And if your child no longer lives with you, it makes “helping” almost impossible if you’re unable to access accounts on his or her behalf. To prevent this, you’ll need a financial power of attorney in place. Without it, your hands will be tied.

Financial Power of Attorney Once a child turns 18, you legally lose all access to his or her financial records unless you’re designated as the financial power of attorney. While there are a lot of benefits to having this legal document in place, here are two specific reasons you may need one:

Assisting in financial affairs. One perk of a financial power of attorney is your ability to continue having access to your child’s financial matters, such as tax deadlines, credit cards, contractual obligations and other time-sensitive financial decisions that might get overlooked as your child adjusts to adult life and a new, busy schedule.

Taking over financial affairs. Another reason for declaring a financial power of attorney is for peace of mind in knowing that you can help should your child become incapacitated. A financial POA allows you the ability to continue to pay bills, sign checks, make deposits, sign tax returns and more on your adult child’s behalf. Without one, your family will need to spend time and money on probate court to get a financial power of attorney assigned.

Since turning 18 marks the end of adolescence in the eyes of the law, having the appropriate documents in place can help your family better navigate this transition to adulthood, avoiding unintended consequences when dealing with finances. If you need more information, please do not hesitate to reach out.

 

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