13th Aug 2025

Legal Planning for Your 18-Year-Old

Ensuring Your Child’s Safety and Independence in Michigan

When your child turns 18, they become a legal adult, gaining independence over their medical, financial, and personal decisions. For parents, this can be a challenging transition. You may no longer have automatic access to your child’s information, even in emergencies. Without proper legal planning, your ability to support your child can be limited. Here’s how you can prepare your 18-year-old for adulthood while ensuring you can step in when needed.

Teaching Financial Responsibility

At 18, most young adults are just beginning to manage their own finances. Equipping your child with essential financial knowledge is key to helping them thrive as independent adults.

Budgeting and Money Management: Encourage your child to understand budgeting basics. Discuss how to track income and expenses, and emphasize the importance of saving for both short-term needs and long-term goals. Developing strong money habits early on can help them avoid unnecessary debt and feel in control of their finances.

Understanding Credit: Explain the importance of credit and how it impacts future financial opportunities, from renting an apartment to taking out a loan. Talk about how credit cards work, including interest rates, responsible use, and the significance of paying off balances. Building good credit can open doors, so this is a valuable lesson for young adults.

Navigating Taxes: Filing taxes can feel overwhelming for many young adults. Go over the basics, including common forms like W-2s for employees or 1099s for freelance work. Familiarizing them with tax terms and filing procedures will reduce stress and ensure they meet their obligations.

Healthcare Knowledge: With adulthood comes new healthcare responsibilities. If your child is on your health insurance, explain co-pays, deductibles, and premiums, as well as when and how to seek medical care. Teaching them how to manage health-related expenses will empower them to take charge of their well-being.

These discussions give your child the foundation they need to manage adult responsibilities and prepare them to make sound financial decisions.

Discussing Medical and Emergency Scenarios

Although it is difficult to imagine, emergencies can happen. Having open discussions about medical and financial scenarios helps your child prepare for unforeseen circumstances.

Medical Preferences: Encourage your child to consider what they would want in a medical emergency. For example, if they’re in a serious accident and can’t communicate, who would they want making healthcare decisions on their behalf? This is also an opportunity to discuss specific scenarios, such as resuscitation, life support, and long-term care. These conversations help your child clarify their wishes and understand why documenting these choices legally is important.

Accessing Financial Accounts: Talk with your child about their financial accounts, especially if they have college-related expenses, tuition payments, or scholarships. Discuss how you can assist them with managing finances if they’re temporarily unable to do so, like in a medical emergency. Emphasize that your goal is to support them, not to control their financial life.

Having these conversations early on normalizes discussing health and finances, making it easier for them to turn to you for support when needed.

To ensure you can assist your child in a crisis, a few essential legal documents are crucial. These documents give you the ability to help manage medical and financial matters if your child is unable to do so.

Healthcare Proxy and Advance Directive: A healthcare proxy allows your child to designate someone, often a parent, to make medical decisions if they’re incapacitated. The advance directive complements this by specifying their treatment preferences in situations like resuscitation or life support. Together, these documents ensure you can act on your child’s behalf while respecting their wishes.

HIPAA Authorization: Privacy laws restrict healthcare providers from sharing medical information with anyone other than the patient, even with family members. By signing a HIPAA authorization, your child grants you permission to access their medical information and receive updates on their condition. In emergencies, this can make a significant difference in ensuring timely and informed decisions.

Financial Power of Attorney (POA): A financial POA lets your child appoint someone to manage their financial matters if they’re unable to do so. This could involve paying bills, managing bank accounts, and handling loans. Without a financial POA, you would face legal barriers to accessing or managing their finances, potentially disrupting payments and causing unnecessary complications.

Will or Trust: While many young adults may not see a need for post-death planning, a simple will can clarify their wishes for any assets they own, such as a car or personal belongings. This ensures that if something were to happen, their wishes are respected, and family members know exactly how to handle their belongings.

These documents enable you to support your child when necessary, while also giving them control over their own life decisions.

The Importance of Regular Reviews

Once your child has established these legal documents, encourage them to review and update them as life circumstances change. Major events like moving, getting married, or starting a new job can all influence their decisions.

Periodic Check-Ins: Set reminders to review these documents every few years. Regular updates help ensure your child’s choices remain accurate and relevant to their current life situation.

Updating Beneficiaries: As they accumulate assets like life insurance or retirement accounts, remind your child to keep beneficiary designations current. This helps ensure assets go to the intended individuals and reduces the likelihood of disputes.

Revisiting these documents as a part of their routine helps your child understand that estate planning is a lifelong process, not a one-time task.

How to Get Started: Seeking Professional Guidance

The process of establishing these documents can feel overwhelming, especially for first-time adults and their parents. Consulting a Michigan estate planning attorney experienced in working with young adults can simplify the process. An attorney will ensure that each document is legally compliant and suited to your child’s specific needs, giving you and your child peace of mind.

Through financial education, open communication, and the right legal planning, you’ll be ready to support your child’s independence while knowing you’re prepared for unexpected situations. Taking these steps now will help your 18-year-old embrace adulthood with confidence and ensure you can provide essential support if the need arises.

Written by Matt Haupt

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