Richard English, Managing Director, Commerce Family Office, Kansas City
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Ideas to consider
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As children enter adulthood, families often find themselves navigating a new balance between growing independence and continued support. While many young adults are ready to make more decisions on their own, there can still be situations in which parents are called upon to help. Having a few foundational documents in place can make those moments easier to navigate while respecting your child’s independence.
The transition can be more complex when a young adult has multiple accounts, different types of assets, or is the beneficiary of a trust. In those circumstances, thoughtful planning can be particularly valuable in helping families maintain continuity as a young adult assumes greater responsibility for managing financial and health matters. Once your child legally becomes an adult, financial institutions, advisors, and other organizations may not be able to share information or accept direction from parents on behalf of a child without the proper legal documents in place.
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Planning considerations as your child enters adulthood Durable power of attorney Emergency contact information Family Educational Rights and Privacy Act (FERPA) authorization Durable power of attorney for health care Health Insurance Portability and Accountability Act (HIPAA) authorization Advance directive, or living will |
A durable power of attorney can provide continuity when needed
As a child reaches legal adulthood, the nature of a parent’s role begins to change. A young adult assumes greater responsibility for financial and legal decisions, while parents may still provide meaningful support and guidance. One means of providing that support is for a parent to act as a child’s agent under a durable power of attorney.
In a durable power of attorney for financial matters, a young adult child can appoint a parent (or other trusted relative) as agent to handle financial and legal matters on the child’s behalf. This can be very helpful if the child is unavailable or becomes incapacitated. Depending on how the document is drafted, the agent may be able to help with tasks such as signing documents, communicating with financial institutions, managing insurance or tax-related matters, or addressing other time-sensitive administrative needs.
For many families, the value of this planning extends beyond a serious illness or emergency. A young adult may be traveling, studying abroad, temporarily unavailable, or otherwise unable to address an important matter personally. Having appropriate authorization in place can provide continuity and help a trusted family member or other designated individual respond when circumstances require.
For families with more complex financial circumstances, these considerations may take on added importance. A young adult may have investment accounts, interests in trusts, real estate, or other financial matters that require attention from time to time. The appropriate scope of the agent’s authority can depend on the individual's circumstances, making this an important topic to discuss with an estate planning attorney as a child prepares for adulthood.
Practical planning for when your child heads to college
Heading off to college is often one of the first times a young adult needs to manage certain aspects of life independently. Along with conversations about budgeting, personal responsibility, and family expectations, this can also be an appropriate time to review a few practical, administrative matters that may make it easier to support your student if the need arises. You may want to discuss who the school should contact in an urgent situation and with whom your student has authorized the university to share certain educational information.
Most colleges and universities ask students to designate an emergency contact before arriving on campus. While it may rarely be used, keeping this information current helps ensure the university knows whom to reach if a serious medical, safety, or other emergency occurs. It can also be a simple opportunity for families to discuss how they would want to communicate and support one another if an unexpected situation arises.
Another item families may choose to discuss is whether their student wants to complete a Family Educational Rights and Privacy Act (FERPA) authorization. A FERPA authorization allows a college or university to share certain educational information with individuals the student designates, typically parents, grandparents, or another trusted person. While many families may never need to rely on it, having the authorization in place can simplify communication if questions arise involving tuition, financial aid, registration, or other administrative matters. Completing the authorization does not diminish a student’s independence. It simply provides flexibility should the need arise.
Planning for health care decisions as your child becomes an adult
As children enter adulthood, parents often continue to play an important role in providing guidance and support, even as their children take greater responsibility for their own decisions. Health care is one area where a few thoughtful planning steps can help families navigate that transition and clarify how support can be provided if a health issue arises.
Once a child reaches legal adulthood, parents do not automatically have authority to make health care decisions or access protected health information on their child's behalf. Establishing appropriate health care documents can help a young adult designate trusted individuals to assist with medical decisions and communication when needed. These considerations can be particularly relevant before a child leaves home for college, begins traveling independently, or otherwise takes on greater responsibility for managing the child’s own health care.
A durable power of attorney for health care allows a young adult child to designate a parent or other trusted relative to make and communicate health care decisions if the child is unable to do so. Having a person available to exercise this authority can be essential if the need arises.
A Health Insurance Portability and Accountability Act (HIPAA) privacy authorization serves a different purpose. Rather than giving someone authority to make health care decisions, it allows a young adult to authorize designated individuals to receive certain protected health information from health care providers. This can be essential for the person(s) designated in the durable power of attorney for health care in gathering the information needed to make important decisions.
An advance directive, sometimes referred to as a living will, allows an individual to express preferences regarding life-sustaining treatments in the event of a terminal condition. Although these conversations may feel premature when a child is just entering adulthood, discussing health care preferences can be a meaningful part of preparing for greater independence. More importantly, the conversation itself gives families an opportunity to understand one another's wishes and consider how they would want to approach difficult decisions.
Together, these documents can provide a framework for making and communicating health care decisions while giving young adults an opportunity to take ownership of their wishes. Putting these documents in place can provide family members with the peace of mind that comes from knowing that their wishes will be honored.
Planning with your family’s future in mind
Preparing a young adult for greater independence often involves more than conversations about education, careers, and financial responsibility. It also includes establishing practical safeguards that allow families to navigate unexpected situations with greater clarity and confidence. While every family's circumstances are different, reviewing these planning considerations together can provide an opportunity for meaningful conversations about responsibility, decision-making, and the support systems that remain in place as children enter adulthood.
At Commerce Trust, we help families think through these transitions as part of a comprehensive wealth strategy. Working alongside your estate planning attorney and other advisors, we can help identify planning considerations that align with your family's goals, values, and long-term vision for future generations.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.
The opinions and other information in the commentary are provided as of August 20, 2026. This summary is intended to provide general information only and may be of value to the reader and audience.
This material is not a recommendation of any particular investment or insurance strategy, is not based on any particular financial situation or need, and is not intended to replace the advice of a qualified tax advisor or investment professional. While Commerce may provide information or express opinions from time to time, such information or opinions are subject to change, are not offered as professional tax, insurance or legal advice, and may not be relied on as such. Consult an attorney for legal advice, including drafting and execution of estate planning documents.
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