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Precollege Financial & Legal Matters


There are a few legal and financial issues that should be addressed before your son or daughter goes off to college. If your child has turned or will turn 18 during the next year, they are legally an adult, and you, the parent, lose the legal authority to make decisions on their behalf. That means that you have no legal right to see their grades, manage their finances (although you remain responsible for paying their college tuition), make medical decisions, or speak with their doctor. So, before they go off to college, consider asking them to sign some documents that will allow you to continue to help your child.

  1. FERPA Release: with your child’s permission, you can speak with the college about their performance. Colleges often have their own FERPA release forms, so ask your college for a copy.

  2. HIPAA Authorization: allows you to access your child’s health records and speak to their doctors about medical issues.

  3. Advance Care Directive for Health Care: allows you to act on your adult child’s behalf in the event that they are incapacitated and unable to make decisions for themself.

  4. Durable Power of Attorney: allows you to act on your adult child’s behalf regarding legal or financial matters.

You can get the last three forms mentioned from your family lawyer. Each of these forms can be revoked at any time, but having them in place while your child is away at college may provide the whole family with extra peace of mind.



This is also a good time to address money management issues.

  • Health insurance: check out options provided by the college and compare these policies with your existing family medical coverage.

  • Set up a bank account that will allow you to easily transfer money to his account. An online bank account may be the most useful, especially if the bank has special student accounts available that will give parents access to bank information. Find out which banks have ATMs close to campus– college kids usually don’t write many checks. Be sure to check on fees for using an ATM that’s not part of your bank’s network. Those fees can add up!

  • Make plans to protect student property. College kids tend to have a lot of valuable electronics and computer equipment. Renter’s insurance can protect your investment if these items were to disappear. Your homeowner’s policy might also cover dorm room possessions– check with your agent.

  • Car insurance: check with your agent. If your child will not have a car at college, you may be eligible for a discount on your auto rate.

  • Discuss credit card dangers: college students are besieged with credit card offer–discuss how the misuse of credit cards can affect their ability to get credit in the future. Consider a debit card as an option.

Editor’s Note: This post was originally published by The College Advisor, prepared for our clients and their families.

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