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Turning 18 is a milestone. It represents independence, opportunity, and the formal transition into adulthood. What many families do not fully appreciate, however, is that this birthday also creates an immediate and significant legal change.
When a child turns 18, the law recognizes that individual as an adult. Regardless of continued financial support, college enrollment, or inclusion on a family health insurance policy, an 18-year-old is a legal adult. From that day forward, parents no longer have automatic authority to make medical or financial decisions on the child’s behalf.
Medical Decisions
At age 18, federal privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA), prohibit healthcare providers from discussing the adult child’s medical condition with parents unless the child has granted written authorization.
If an adult child is hospitalized, unconscious, or otherwise incapacitated, parents may be unable to:
- Speak with physicians
- Access medical records
- Authorize procedures
- Make healthcare decisions
Absent proper documentation, families may be forced to pursue a court-appointed guardianship to obtain authority, which is a public and time-sensitive legal process that can add unnecessary stress during an already difficult situation.
A Healthcare Power of Attorney (including a HIPAA authorization) addresses this concern. This document typically names one or both parents as the designated agent, authorizing them to access medical information and make healthcare decisions if the young adult is unable to do so.
Financial Authority
The same legal boundary applies to financial matters. Once a child reaches adulthood, parents have no inherent authority over:
- Bank or investment accounts
- Credit cards
- Student loans
- Lease agreements
- Insurance matters
- Tax filings
Even when parents continue to provide financial support, institutions generally refuse to communicate with them or permit action without formal legal authorization.
A Financial Power of Attorney allows the young adult to designate a trusted agent, often a parent, to manage financial and legal matters on behalf of the young adult.
The Appropriate Planning at Age 18
A basic estate plan for a young adult should include:
- Healthcare Power of Attorney (including a HIPAA authorization)
- Financial Power of Attorney
- Last Will and Testament
Even young adults typically own assets, including bank accounts, vehicles, personal property, and digital assets, that should pass according to their wishes rather than by default statutory provisions.
These documents do not diminish independence. They simply ensure that trusted individuals can step in seamlessly if necessary.
The 18th birthday is more than a celebration; it is a legal dividing line. Ensuring proper legal protections are in place is one of the most responsible steps a family can take as a child enters adulthood.
This is a general summary of the law and should not be used to solve individual problems as slight changes in the fact situation may require a material variance in the applicable legal advice.
Written By:
Mark A. Wagner, Esq.
mwagner@kwgd.com
330-497-0700
Canton and New Philadelphia offices