When children are both legal adults yet still dependents, I call this Empty-ish Nesting. Though this can sometime be an awkward parenting phase, I think it’s so rewarding to see them stretch their wings and find their way.
My wife and I have been Empty-ish Nesters for the past few years. Our two young adults aren’t fully on their own financially, but they’re not fully home, either. We realized we needed to make some new planning decisions as we began this new phase.
One piece of this planning didn’t have anything to do with saving for college or completing financial aid (FAFSA) forms on time. We executed Financial and Health Care Power of Attorney forms for our children. This is something I recommend to all of my clients as their children turn 18.
We also updated our kids’ bank accounts so we’re joint owners and signers. They appreciate that this means we can easily transfer some money to them electronically. We appreciate being able to access bank information for taxes and FAFSA forms.
When our older daughter chose to study abroad, I realized I’d need to file a tax return for her–8,000 miles and at least 6 time zones away. So we set up a Financial Power of Attorney (POA) to streamline this process. Though Electronic signature apps also work, I think having two options for doing something are often better than one, especially from that distance.
We decided a Health Care Power of Attorney could also be helpful before she left. Then, if she were ever injured or ill and unable to let a doctor know it was okay to share necessary information with us, we’d be powerless to weigh in on her care remotely or in person. So we added this item to the mix. We continue to have peace of mind with this arrangement now that she’s returned and living in another state.
If you or someone you know would like a copy of the forms necessary to set these items up, please reach out to me or your Vantage Point Wealth Management Advisor. We’ll be happy to share them with you, along with a couple other tips to make the transition to Empty-ish Nest smoother.
Financial Advisor