Top Issues for Parents of Young Adults

Are your children entering that age where adulthood and independence are just around the corner? If so, moms and dads need to be aware of the most common challenges that come with helping young adults move from one phase of life to the next. Likewise, you need to deal with your own transition into being an empty nester or parent who no longer has any children residing at home. What are the top concerns for moms and dads who are just a few years away from saying goodbye to their grown kids?

The first thing to consider is how to downsize once the youngsters move out. Another is how to deal with college expenses. Many struggle to set out rules for adult children who continue to reside at home for a year or more after college. Additionally, there are questions about whether to carry young adults on your auto and health insurance policies. Finally, give careful thought to legal contracts like wills, estate plans, trusts, and more.

Paying for College

With the cost of college at an all-time high, many families struggle to come up with a sufficient financing method. Youngsters with no credit history find it nearly impossible to get loans with sensible interest rates. Parents can’t always lend money to cover tuition and other school expenses. However, many students ask their moms and dads to cosign on loan applications. Having a cosigner is a great way to gain approval from a financial institution.

But are mothers and fathers obligated to do so? Plus, what options do young adults have if they can’t get cosigners? Obtaining and paying for a degree are two separate chores. While students must attend to grades, there is no chance to attend college unless they can get their financial situation straightened out first. Have a discussion with your children about their options for acquiring financing for college. Finally, explain your reasons for choosing not to be a cosigner and let them know that you will help them in other ways.

Deciding About Wills, Trusts, and Gifts

When making long-term financial plans, you’ll eventually reach the point where it’s essential to make decisions about how to dispose of certain assets. If you have life insurance, a second home, or other things of value, now is the time to speak with a lawyer and set up a trust for your family or a general will. There are multiple methods for assigning ownership of your estate. Parents tend to divide will and trust assets among their children or charitable organizations.

If you have young children, it’s usually a good idea to designate a trustee to administer the distribution of the assets in the estate. You’ll need an adult to oversee the regular disbursement of funds for minor children. Other moms and dads place money in trusts for kids who reach the age of 21. In such cases, whether you are still alive or not, the money in the trust is paid out in regular installments to the named recipients. The central issue is to set all the parameters and details in writing so that there is no ambiguity about who gets what.