Turning 18 is an exciting moment in any teen’s life. It comes with newfound independence in the eyes of the law, and marks the transition into adulthood.
But along with some of the freedoms that come with being an adult, there are important responsibilities that accompany them. For one, it is no longer up to the parents to decide what happens with a new adult’s money, health care or possessions.
With this in mind, there are a few legal documents that an 18-year-old can benefit from signing, including a power of attorney, health care proxy and more.
[READ: How to Set Up a Power of Attorney.]
If you are the parent of a teen approaching adulthood, encouraging them to set up these safety nets in case of emergency can put them on a path to success.
Legal Documents To Sign At 18
“Turning 18 brings about newfound independence and responsibilities. While many associate legal preparations with later stages in life, there are essential documents that young adults should consider signing at this age,” Justin Stivers, owner and founding attorney at Stivers Law in Coral Gables, Florida, said in an email.
Odds are, most teenagers aren’t thinking about what happens if they’re in an accident or worse. Still, when you transition into adulthood, these kinds of emergencies are important to account for.
When kids are under 18, parents or legal guardians have the legal rights to make important decisions about their medical care or finances. After you reach that threshold, however, parents no longer have those capabilities by default. If there is a person in your life you want managing your legal decisions, you’ll have to put that in writing.
“Failing to have these documents could result in your family having to have a court-appointed guardian named on your behalf who will make these decisions for you. This court-appointed person could be a family member, but it could be a random guardian. Everyone wants to avoid guardianship and have their rights taken away from them. Making sure you have these documents in place is a good step to avoiding that,” Stivers said.
Consider setting up these four documents as soon as you turn 18:
Health Care Proxy
No one wants to imagine being in an accident that renders you incapable of making your own medical decisions, but it can happen to anyone.
According to David Handler, a partner in the trusts and estates practice group at Kirkland & Ellis in Chicago, a health care proxy is the minimum legal insurance you should set up when turning 18.
“Otherwise, if the teen has a medical issue, the doctors will not share information without verbal consent,” Handler said in an email.
This document designates another individual who can make medical decisions if you are incapacitated and cannot communicate their wishes.
Power of Attorney
Another legal document to consider signing is a power of attorney, or POA. This is especially useful for financial decisions, especially as teens are just learning how to manage money.
[Important Financial Goals for Teens]
“The teen should also consider executing a property power of attorney to authorize parents or others to handle financial matters and sign tax returns if the teen is unable to do so. This may be useful especially if the teen is away at college,” Handler says.
While power of attorney is typically associated with making financial decisions for an older individual who is incapacitated by disease or some other situation, it can come in handy in many situations.
“A power of attorney can come in handy not only in a horrible situation like an accident but could also be needed if the young adult is studying overseas or traveling and needs something legal done back at home,” Stivers says.
Living Will
In some cases, a teen might not want to hand over health care power of attorney to their parents, but will still want to designate wishes in case of health-related emergencies. That’s where a living will can come in handy.
A living will, different from the last will and testament that most people think of, is a document that lets physicians know that you do not want to be kept on life support if at least two doctors have determined that you will have no meaningful life and will remain in a vegetative state, Stivers says.
“Some people prefer to make this decision themselves rather than having somebody named in their health care power of attorney make that decision for them,” he adds.
Basic Will
While it’s unlikely a freshly-18-year-old teenager has significant assets to distribute should something happen, setting up a basic will can be a good idea.
“Otherwise, state law will dictate, likely leaving the assets to parents, otherwise to siblings,” says Handler.
A legal representative can help you determine what you should include in your will, and having one from a young age means you can simply alter it as you grow your assets or experience major life changes, rather than having to take the time to establish one in the future.
[READ: 11 Steps to Writing a Will.]
How Parents Can Support Their Adult Children
Legal documents are no doubt the last thing on a teenager’s mind. But setting up these insurance policies in case of emergency can help make their adult lives more seamless should anything happen.
If you’re a parent of a child about to enter adulthood, it’s important to show them why these documents are worth their time and help guide them through the process.
“Explain that they are now an adult in the eyes of the law,” Handler says.
“Their actions will have consequences and they won’t get a ‘break’ because they are only 18. Medical and financial institutions must treat them as adults, so if they want anyone else to be able to assist them in their affairs, they need to put powers of attorney in place,” he adds.
Stivers said that this isn’t intended to frighten your children, but rather demonstrate that these things do in fact apply to them.
“While the parent may not necessarily want to scare the child, if there are real-life examples they can use that will go a long way in helping the young adult see that this can happen to anyone,” he says.
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Legal Documents You Should Sign When You Turn 18 originally appeared on usnews.com
