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First in Class: Importance of Power of Attorney for College Students

If your child went to college this year you likely helped them acquire dorm essentials, review their class schedule, and file all the necessary paperwork for enrollment, student loans, financial aid, and the like. Give yourself a pat on the back; as a parent you should feel great that the small human you raised is beginning to charter the course for a successful, fulfilling life!

However, there are likely two important documents you (and your college student) didn’t have on the college prep list: power of attorney for healthcare and financial power of attorney.

I encourage every Iowan to have these essential documents a part of their quality estate plan. However, college students are in a unique position since many don’t yet have the need for a full estate plan if they don’t have children, pets, substantial financial assets, real estate, at the time they head off for their undergraduate education. But, even if a college student doesn’t have a need for an entire estate plan, they still need these power of attorney documents. Let’s review both.

Power of Attorney for Healthcare

A power of attorney for healthcare designates someone to handle your healthcare decisions for you if you become unable to make those decisions for yourself. This essentially gives another person the power to make decisions on your behalf. For example, if you don’t want to be kept alive with machines, you can clearly outline that in your power of attorney for healthcare. Keep in mind that power of attorney for healthcare isn’t just about end-of-life decisions—it can cover any medical situation. So, in a worst case scenario, if your (adult) child were to have some sort of debilitating accident and were deemed by a medical professional unable to make healthcare decisions for themselves, then a trusted adult (such as you, the parent) could make such decisions in the best interest of their health.

Power of Attorney for Finances

The power of attorney for finances is similar to the power of attorney for healthcare; your designated agent has the power to make decisions and act on your behalf when it comes to your finances. This gives the selected agent the authority to pay bills, settle debts, sell property, or anything else that needs to be done if you become incapacitated and unable to do this yourself.

While college students may not have many financial assets, their bank accounts, credit cards and apartment leases in their name should all be taken into consideration and accounted for. Additionally, a financial power of attorney can cover digital assets including online accounts for their school, banking, email, and social media, among others. Without passing along the necessary digital information and instructions to digital accounts, parents if they’re the authorized representative, can face major headaches on issues such paying bills, accessing bank records, shutting down social media profiles, and the like she says.

Course of Action: Avoid Court

Having power of attorney documents in place also prevents someone, like you as a parent, from having to go to court to get permission to act as the student’s proxy. Avoiding court at all costs (pun intended) is a wise plan as it’s both time consuming and expensive.

Does State Residency Matter?

A power of attorney that’s validly executed in the state in which an individual has full-time residency is usually honored across the U.S. But, what if your child is enrolled at a school out-of-state? Not a problem. Simply have your in-state attorney contact a recommended attorney in the state where the school is located to confirm the power of attorney document would be valid in that state and if not, recommend provisions to ensure it would be.

College student tossing cap into air

Why Now?

When your child is a minor (under age 18) you need certain legal documents such as nomination of guardianship. Once your child turns 18 (AKA becomes a legal adult) they are no longer under your immediate care as their guardian you as their parent are no longer responsible for making their healthcare decisions. Yet, all of us need someone we trust to make decisions in our best interest, which is why adults (even college students and young professionals) need power of attorney documents established.

How to get Started? Have a conversation.

As a parent you cannot force your college student to sign a power of attorney, but you may be one of the best people to discuss the topic. While a topic that includes debilitating injuries and the prospect of death is not a pleasant one for anyone involved, it’s nonetheless important. As a trusted adult you can explain how these documents could make a vital difference in some health and financial related situations. A good place to start in the conversation is explain what the documents are and how they can be used to execute their personal wishes.


I’m always happy to help more Iowans (at any age) get the necessary estate planning documents they need. Contact me by phone or via email at gordon@gordonfischerlawfirm.com and we can get started.

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5 Necessary Policies for your Employee Handbook

There are several provisions that just about all employee handbooks should include. Let’s simply cover the top five. There are certainly numerous other important provisions to include in an employee handbook, but these five are critical and provide important protections for employers (both nonprofit and for-profit employers).

  1. The employee handbook should make it clear it is NOT a contract. The employee handbook needs a “disclaimer.”

Under Iowa law it’s critically important to point out that the employee handbook is just that – a handbook – and not an employment contract, and does not make any promises about continued employment. Consider using language similar to this:

I understand and agree that nothing in the Employee Handbook creates, or is intended to create, a promise or representation of continued employment and that employment at [Nonprofit/Company] is employment at will, which may be terminated at the will of either [Nonprofit/Company] or myself. Furthermore, I acknowledge that this handbook is neither a contract of employment nor a legal document.

  1. The employee handbook should make clear it trumps other, older policies and provisions. The employee handbook needs a “superseding” provision.

The employee handbook should make clear that it includes the most up-to-date guidance on company policies. Wording like this may be helpful:

This handbook and the policies and procedures contained herein supersede any and all prior practices, oral, or written representations, or statements regarding the terms and conditions of my employment with [Nonprofit/Company]. By distributing this handbook, [Nonprofit/Company] expressly revokes any and all previous policies and procedures that are inconsistent with those contained herein.

  1. The employee handbook should make clear it is subject to change. It needs “wiggle room” language.

Paperwork on table in front of computer

The policies in the handbook may well be subject to change. Of course, new issues arrive, and you may need to make revisions. Consider using something like the following:

I understand that, except for employment-at-will status, any and all policies and practices may be changed at any time by [Nonprofit/Company], and [Nonprofit/Company] reserves the right to change my hours, wages, and working conditions at any time. All such changes will be communicated through official notices, and I understand that revised information may supersede, modify, or eliminate existing policies.

  1. The employee handbook should make clear that employees are “at will.”

The employee handbook must be unambiguous about employees’ at will status:

Your employment is not for any specific time and may be terminated at will with or without cause and without prior notice by [Nonprofit/Company].

  1. The employee handbook should contain an acknowledgement page.

    Paper and computer

It is important to the employee handbook include an acknowledgment page that the employee signs and returns. The acknowledgement page should state that the employee understands it is his or her responsibility to read and follow the policies. The acknowledgement page should also be able to be separated from the handbook, so that it can be signed by the employee and saved in the employee’s personnel file. Wording like this might be helpful:

I have received the handbook, and I understand that it is my responsibility to read and comply with the policies contained in this handbook and any revisions made to it.

________________________________________
Employee’s Signature

________________________________________
Employee’s Name (Print)

____________________
Date

TO BE PLACED IN EMPLOYEE’S PERSONNEL FILE


Does your employee handbook contain these five provisions? Why or why not? I’d love to hear from you. Give me a call at 515-371-6077 or email me at gordon@gordonfischerlawfirm.com.

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Financials in book

You Need a Financial Power of Attorney ASAP

What is a financial power of attorney?

A financial power of attorney is a legal document that designates someone to handle your financial decisions on your behalf.

What happens if I don’t have a financial power of attorney?

If you do not have a power of attorney and you were to become incapacitated, any financial decisions would need to be made by a court-appointed conservator. At a court’s direction, the conservator would handle your financial assets. It’s a quite expensive and time consuming process, especially compared to the relative simplicity of executing a power of attorney.

After I die, can my agent continue to operate under my financial power of attorney?

A common misperception is that your agent will be able to use this power after your death. At your death, any power of the agent is automatically revoked and it will be necessary to switch management to the representative appointed through probate.

Laptop with finance info on it

Who should I choose to serve as an agent?

The agent you choose will be managing your finances, so it is critically important to choose someone trustworthy; someone who will not abuse or exploit this power; someone who will listen to your wishes, goals, and objectives, as included in the document or otherwise communicated; and, someone who will look out for your best interests.

You also have the option of designating a successor agent who can take over if the original agent is unable or unwilling to serve. This is highly recommended.

Who should receive a copy of my financial power of attorney?

The person named as agent and any person named as a successor agent should receive a copy. It would also be wise to share a copy with your financial institution(s), such as your bank or credit union.

Can I revoke the financial power of attorney?

Yes, you may revoke the document, at any time. You can also amend the document (change it, revise it, etc.) at anytime.


Financial power of attorney is one of the six main documents which comprise Iowans’ estate plans. To get started on establishing your financial power of attorney contact me by phone at 515-371-6077 or email.