Your Adult Child Has Income and Assets — But No Guardrails

Many parents breathe a sigh of relief when their child reaches adulthood, starts earning an income, and begins building assets. It feels like a milestone that signals independence, stability, and success. But from an estate planning perspective, adulthood without legal and financial guardrails can create significant risk—for your child and for your family.

This is especially true for young adults in their late teens, 20s, and 30s who are earning income, opening investment accounts, buying cars or homes, starting businesses, or accumulating digital assets—yet have no legal framework in place to protect themselves or guide others in a crisis.

The Illusion of Independence

Your adult child may be financially responsible, intelligent, and capable. But the law treats them as fully autonomous the moment they turn 18. That means:

• You no longer have the legal authority to help manage their finances or medical decisions.
• Banks, doctors, and financial institutions cannot speak with you without written authorization.
• If something unexpected happens, you may have no legal standing to step in.

Without proper planning, independence can quickly become vulnerability.

What Happens Without Guardrails?

1. No One Can Manage Their Finances if They Are Incapacitated

If your adult child is in an accident or becomes temporarily or permanently incapacitated, no one automatically has authority to pay bills, manage investments, access accounts, or handle business interests. Families often assume parents can step in—but legally, that is not the case.

The result? Court involvement, delays, expenses, and public proceedings to appoint a conservator or guardian.

2. Medical Decisions May Be Made Without Family Input

Without an Advance Health Care Directive or HIPAA authorization, you may not be able to:

• Receive medical updates
• Speak with doctors
• Make decisions in emergencies

This can be emotionally devastating in moments when clarity and advocacy matter most.

3. Their Assets May Be Exposed or Mishandled

Young adults with income and assets often have:

• Employer benefits and retirement accounts
• Bank and brokerage accounts
• Vehicles, real estate, or business interests
• Cryptocurrency and digital assets

Without a plan, these assets may be:

• Frozen during probate
• Distributed under default state law rather than their wishes
• Vulnerable to creditors or predators

4. Digital Life Chaos

Your child’s digital footprint likely includes email, social media, cloud storage, subscriptions, and financial platforms. Without legal authorization, accessing or managing these accounts can be nearly impossible.

The Simple Guardrails Every Adult Child Should Have

The good news is that the foundational guardrails for young adults are straightforward and affordable. A “Young Adult Emergency Plan” typically includes:

Durable Power of Attorney

Allows a trusted person to manage finances if they cannot.

Advance Health Care Directive

Designates someone to make medical decisions and outlines their wishes.

HIPAA Authorization

Allows family or trusted individuals to receive medical information.

Digital Asset Authorization

Grants access and authority over online accounts and digital property.

Living Will or Simple Trust

A Living Will (or a simple Trust, depending on the situation) clarifies who receives assets and how decisions should be handled if they are unable to communicate or pass away.

These documents create clarity, reduce stress, and keep decisions in the family—rather than in a courtroom.

Why This Matters for Parents

Parents often assume estate planning is only necessary once wealth is significant or later in life. But adult children with even modest income and assets face real risks without legal planning.

Planning now:

• Protects your child’s autonomy and wishes
• Prevents court involvement
• Reduces family conflict
• Provides peace of mind for everyone

A Thoughtful Next Step

If your adult child is earning income, building assets, or living independently, now is the right time to put guardrails in place. A brief planning conversation today can prevent confusion, conflict, and costly court proceedings later.

Our team regularly helps families create streamlined Young Adult Emergency Plans that are easy to implement and tailored to each child’s needs.

If you would like to explore options for your family, we would be honored to guide you through the next steps.