Was this a typical summer the buzz of going back to school would be in full force as the calendar is about to turn to August.

We all know that nothing about 2020 has been routine and to schedule.  Despite this ongoing interruption, there is one aspect that remains consistent.

Every day we all grow another day older.

It is time for your Summer Financial Checkup

Protecting the Teenage Adult

Most of us are conscious of the estate planning decisions and documents that need to be in place as we age. However, these documents are just as important for our teenage children as they are for us. Although you may never view your “child” as an adult, under Texas law, a child is considered an adult on his or her 18th birthday. “This means that when teenagers blow out their 18 birthday candles, their wish of being independent of their parents is coming true.”  Although that child may still be dependent financially, you are no longer the legal guardian and, in most circumstances, can no longer act on your child’s behalf.  To ensure your “teenage” adult is fully protected, consider consulting with an attorney to draft the following documents:

Durable Power of Attorney – A statutory durable power of attorney appoints an agent to act in financial and legal transactions.  This document is essential to give parents the ability to discuss their child’s financial accounts with bankers, colleges, credit cards, or other financial institutions.

Authorization to Release Medical Information – Since 2003, the Health Insurance Portability and Accountability Act (HIPAA) has restricted disclosure of certain health information by health care providers to anyone other than the patient.  Thus, once a child turns 18, medical personnel can no longer disclose medical information to parents, unless the child has authorized such disclosure in writing.  A general HIPAA Authorization can provide such authorization so parents can continue to talk with doctors and access their child’s medical information.

Medical Power of Attorney – A medical power of attorney enables another person to make health care decisions that one would otherwise make, if capable.  Texas law allows medical professionals in hospitals to turn to spouses or parents of adults for health care decisions if there is no medical power of attorney in place.  However, teenage adults are encouraged to appoint their parents as their agents to ensure that parents continue to have the authority to make medical decisions for their children after they turn 18, in case the child is not capable of responding to the doctors.

Taking the time to obtain these documents can ensure that parents maintain the ability to protect and assist their children as they move into adulthood.


Life and Disability Coverage Outside of Work?

Talking about insurance is like discussing religion or politics at a family gathering.  It is going to cause an argument, or everyone is going to excuse themselves from the table.

When you are employed, you may have life and disability insurance through your work.  When that employment ends, so does your employer-provided life and disability insurance.

Having a gap in coverage level, coverage type, or cost could end up being a huge mistake down the road.

The 2018 Bureau of Labor Statistics report shows the average person changes jobs twelve times during his or her career. So, what happens if you leave your employment?

How much is your family’s coverage gap when you are not employed?

Will you likely encounter that some employers that have great benefits and some that may not even have benefits?

Take the time now during the Summer Financial Checkup to design your risk management strategy by getting coverage outside of work and using group policies to supplement – not the other way around.


Term Life Insurance may be useful as it can be cheap and provide a lot more coverage for the price.

Permanent Life Insurance can be a tool to build an asset rather than renting a block of time.

Personal Disability Income coverage may be an alternative way to wrap around your group coverage. This type of coverage can be harder to qualify for and more expensive, but does that mean it is more likely to be utilized in a time of need?

Now is the time to act on protecting you, your family, including your children over the age of eighteen.

Got something on your mind or have a question?

Call us 214-239-4700 or click to set up a ZOOM MEETING

Michael Tannery CPA CDFA® AIF® ● CEO
Registered Principal | Tannery & Company

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 The opinions expressed in this material are for general informational purposes only and is not a substitute for professional advice.  Individual circumstances do vary.



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