Skip to content

This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

Close
AICPA-CIMA
  • AICPA & CIMA:
  • Home
  • CPE & Learning
  • My Account
Journal of Accountancy
  • TECH & AI
    • All articles
    • Artificial Intelligence (AI)
    • Microsoft Excel
    • Information Security & Privacy

    Latest Stories

    • Incorporating prompt engineering into the accounting curriculum
    • Create a dynamic to-do list with Excel’s checkboxes
    • Another way to manage authentication texts
  • TAX
    • All articles
    • Corporations
    • Employee benefits
    • Individuals
    • IRS procedure

    Latest Stories

    • Treasury posts preliminary list of jobs eligible for no tax on tips
    • Taxpayer’s circumstances do not warrant equitable tolling
    • When does debt become worthless?
  • PRACTICE MANAGEMENT
    • All articles
    • Diversity, equity & inclusion
    • Human capital
    • Firm operations
    • Practice growth & client service

    Latest Stories

    • Treasury posts preliminary list of jobs eligible for no tax on tips
    • California issues draft guidance for climate risk disclosure
    • Business outlook brightens somewhat despite trade, inflation concerns
  • FINANCIAL REPORTING
    • All articles
    • FASB reporting
    • IFRS
    • Private company reporting
    • SEC compliance and reporting

    Latest Stories

    • SEC accepting Professional Accounting Fellow applications
    • SEC names new chief accountant
    • SEC ends legal defense of its climate rules
  • AUDIT
    • All articles
    • Attestation
    • Audit
    • Compilation and review
    • Peer review
    • Quality Management

    Latest Stories

    • AICPA unveils new QM resources to help firms meet Dec. 15 deadline
    • 8 steps to build your firm’s quality management system on time
    • Auditing Standards Board proposes a new fraud standard
  • MANAGEMENT ACCOUNTING
    • All articles
    • Business planning
    • Human resources
    • Risk management
    • Strategy

    Latest Stories

    • Business outlook brightens somewhat despite trade, inflation concerns
    • AICPA & CIMA Business Resilience Toolkit — levers for action
    • Economic pessimism grows, but CFOs have strategic responses
  • Home
  • News
  • Magazine
  • Podcast
  • Topics
Advertisement
  1. newsletter
  2. Cpa Insider
CPA INSIDER

3 steps clients with kids in college need to take

Be sure your clients can make decisions for their adult children in the event of an emergency.

By Patricia M. Annino, J.D.
March 21, 2016

Please note: This item is from our archives and was published in 2016. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

March 7, 2016

What to do when a client wants to give an LLC or limited partnership unit to charity

February 22, 2016

Say good-bye to a popular Social Security planning technique

February 22, 2016

Don’t let your clients miss out on the IRD deduction

TOPICS

  • Personal Financial Planning
    • Estate Planning
    • Elder, Special Needs & Chronic Illness Planning

Clients with adult children in college, quite naturally, are often reluctant to think about what might happen to their kids in an emergency. But it’s important for them to have a plan in place in the unlikely event that they will need to make medical or financial decisions on behalf of their college-student children. 

Clients need to take three steps to ensure they’re legally authorized to take action for their children in the event of an emergency: becoming designated as their child’s health care agent through a health care proxy or health care durable power of attorney; being granted access to their child’s financial information through a financial durable power of attorney; and being listed as ICE (In Case of Emergency) contacts on their children’s cellphones.

Once college students reach the age of majority (18 in most states), they are legally considered adults, and their parents are no longer entitled to see their medical or financial records or make decisions on their behalf. Parents may wrongly assume that, if they’re paying for all or part of their children’s tuition, they are allowed to access their children’s documents. But the legal truth is once students attain the age of legal majority, they have a legal right to privacy and the right to govern their own lives. That’s why it’s so important that clients and their children discuss ways they can act on behalf of their children should an emergency happen.

The health care proxy or health care durable power of attorney: This is a legal document by which a person authorizes a parent, other relative, or trusted family friend, to serve as his or her health care agent. It gives the agent the authority to make medical care decisions and access medical records for a person should he or she become incapacitated. An individual can only name one other person at a time to serve as health care agent. However, individuals can be successively named. Students should also sign what is known as a HIPAA (Health Insurance Portability and Accountability Act of 1996) release that gives medical practitioners permission to share information with those named on it.

It is good practice to list the health care agent’s phone numbers and contact information in an accessible place and to give a copy of the health care proxy to the student’s primary care physician and named health care agents. If possible, students should also carry a copy of the proxy in a wallet. It is also advisable to have a signed electronic copy available to be emailed to any emergency room.

Financial durable power of attorney: A financial durable power of attorney is a document by which someone gives access to his or her financial information to a specific person, who is called the “named attorney in fact.” (A “durable” power of attorney is one that is not revoked if the individual who granted it becomes disabled or incapacitated). In most cases the document goes into effect when it is signed. For most students, the purpose of the financial durable power of attorney is to give their parents access to financial college records and banking information, and to enable them to access or pay credit card bills and deal with a landlord.

Unlike a health care proxy, the financial durable power of attorney can be given to more than one person at a time. If the student is designating both parents, the document should state whether either of them can act independently or if both must act together. The student can also designate successors in the durable power of attorney and may revoke it at any time. All powers of attorney (durable and nondurable) are revoked at death.

Advertisement

It is possible in most states to establish what is known as a “springing durable power of attorney”—one that “springs” into existence in the event of disability or incapacity. However, these powers of attorney can be difficult to rely on because, in most cases, a physician’s certificate is needed to define “disability” or “incapacity.”

Programming cellphone or smartphone with ICE (In Case of Emergency) contacts. Adding ICE contacts to your cellphone allows first responders to get in touch with emergency contacts if you are incapacitated and can’t communicate. If a student is in a car accident or other emergency and can’t communicate, a first responder can call an ICE contact on his or her phone to let a loved one know what has happened.

Let clients know their children can add ICE contacts to their phones’ address books. They can list multiple contacts’ phone numbers as ICE-1, ICE-2, and so on. The student can program in as many numbers as he or she wishes.

It is important to understand that being an ICE contact does not give your clients the legal authority to act; it merely begins the communication process. Only a legal document such as a health care proxy or health care durable power of attorney can give a designated agent legal authority. Therefore it makes sense for a student’s health care agent and the ICE contact to either be the same person or be coordinated.

Though no one likes to think about their loved ones suffering an accident, it’s still important to have a plan in place in the event of one. Taking these security measures can bring clients peace of mind and can help their college student children take their first steps into estate planning. Talking about health care proxies, the financial durable power of attorney, and ICE programming is an excellent way for your clients to begin an ongoing discussion about responsibility and structure with their adult children.

Note: PFP Section members and PFS credential holders can access a podcast on updating estate planning documents by Susan Bruno, CPA/PFS. 

Patricia M. Annino, J.D., LL.M., a nationally recognized authority on estate planning and taxation, chairs the Estate Planning practice at Prince Lobel Tye LLP. 

Advertisement
Advertisement

latest news

September 4, 2025

Treasury posts preliminary list of jobs eligible for no tax on tips

September 4, 2025

California issues draft guidance for climate risk disclosure

September 4, 2025

Business outlook brightens somewhat despite trade, inflation concerns

September 3, 2025

New: Digital assets practice aid addresses auditing of lending, borrowing

August 29, 2025

Guidance on research or experimental expenditures under H.R. 1 issued

Advertisement

Most Read

The No. 1 risk to retirement – and one way to guard against it
Tax provisions in the One Big Beautiful Bill Act
Billy Long out as IRS commissioner after less than two months
Calculating AI’s impact on CPAs: New study quantifies time savings
AICPA unveils new QM resources to help firms meet Dec. 15 deadline
Advertisement

Podcast

September 4, 2025

Summing up economic sentiment and concerns about inflation and tariffs

August 29, 2025

Take a bold leap instead of a tentative step

August 28, 2025

Mark Koziel Q&A: Talent, sense of community, profession opportunities

Features

Calming nervous clients nearing retirement
Calming nervous clients nearing retirement

Calming nervous clients nearing retirement

7 retirement tips for small firm CPAs
7 retirement tips for small firm CPAs

7 retirement tips for small firm CPAs

Building a better CPA firm: Stepping up service offerings
Multi-colored plus signs

Building a better CPA firm: Stepping up service offerings

2025 tax software survey
Smiley, frowney, and neutral faces for Tax Software Survey.

2025 tax software survey

SPONSORED REPORT

Smart Strategies in Data Security and Risk Management

In an increasingly digital profession, data security has become one of the most critical challenges facing finance and accounting professionals today. Stay up to date with practical guidance to help you mitigate these risks and strengthen your security posture.

From The Tax Adviser

August 30, 2025

2025 tax software survey

August 30, 2025

Are you doing all you can to keep the cash method for your clients?

July 31, 2025

Current developments in S corporations

July 31, 2025

Paid student-athletes: Tax implications for universities and donors

MAGAZINE

September 2025

September 2025

September 2025
August 2025

August 2025

August 2025
July 2025

July 2025

July 2025
June 2025

June 2025

June 2025
May 2025

May 2025

May 2025
April 2025

April 2025

April 2025
March 2025

March 2025

March 2025
February 2025

February 2025

February 2025
January 2025

January 2025

January 2025
December 2024

December 2024

December 2024
November 2024

November 2024

November 2024
October 2024

October 2024

October 2024
view all

View All

http://JofA_Default_Mag_cover_small_official_blue

PUSH NOTIFICATIONS

Coming soon: Learn about important news

CPA LETTER DAILY EMAIL

CPA Letter Logo

Subscribe to the daily CPA Letter

Stay on top of the biggest news affecting the profession every business day. Follow this link to your marketing preferences on aicpa-cima.com to subscribe. If you don't already have an aicpa-cima.com account, create one for free and then navigate to your marketing preferences.

Connect

  • X Logo JofA on X
  • facebook JofA on Facebook

HOME

  • News
  • Monthly issues
  • Podcast
  • A&A Focus
  • PFP Digest
  • Academic Update
  • Topics
  • RSS feed rss feed
  • Site map

ABOUT

  • Contact us
  • Advertise
  • Submit an article
  • Editorial calendar
  • Privacy policy
  • Terms & conditions

SUBSCRIBE

  • Academic Update
  • CPE Express

AICPA & CIMA SITES

  • AICPA-CIMA.com
  • Global Engagement Center
  • Financial Management (FM)
  • The Tax Adviser
  • AICPA Insights
  • Global Career Hub
AICPA & CIMA

© 2025 Association of International Certified Professional Accountants. All rights reserved.

Reliable. Resourceful. Respected.