When a Child Turns 18: Financial and Estate Planning Steps to Protect Their Future

Turning 18 is often celebrated as a milestone of independence. Legally, however, it is a line of demarcation that dramatically changes how parents and grandparents can protect, guide, and support the next generation. Overnight, children become adults in the eyes of the law, bringing new freedoms but also new risks.

For high-net-worth families, this transition requires more than a checklist. It demands a thoughtful, values-driven plan that safeguards assets, preserves access, and prepares young adults to steward wealth responsibly. At Sequoia Financial Group, we believe our role is to support families in building that clear, durable framework rests with us, not with families navigating complexity alone.

The Legal Shift at 18 and What It Means

Once a child turns 18, parents and grandparents lose automatic authority to access medical, financial, and educational information, even if they are still providing financial support.^1,2 Without proper documentation, families may be unable to step in during emergencies or periods of incapacity.³

Key foundational documents often include:^4,5,6

• Durable Power of Attorney to allow trusted individuals to manage financial matters if needed.
• Health Care Power of Attorney and HIPAA Authorization to ensure access to medical information and decision-making authority.

Sequoia Financial Group collaborates closely with estate planning attorneys and other professionals to ensure that these documents are properly drafted, aligned with state law, and seamlessly integrated into a comprehensive family plan.

Rethinking Gifting, Trusts, and Control

At 18, children also gain legal control over assets held in their name, sometimes before they are ready to manage them.^7,8 This is particularly relevant for families with custodial accounts, inherited assets, or existing trusts.

At Sequoia Financial, we help families:

• Evaluate whether trust structures should replace or supplement outright ownership.
• Align distribution provisions with maturity, milestones, and values, not arbitrary ages.
• Coordinate tax-aware gifting strategies that strike a balance between generosity and long-term stewardship.

The goal is not restriction for the sake of restriction; it is intentional design that protects opportunity while reinforcing responsibility.

Building Financial Fluency for the Next Generation

Legal and structural planning alone is not enough to protect wealth across generations. For families with significant assets, financial education is one of the most important, powerful, and most overlooked determinants of long-term success. Heirs who inherit money without context, preparation, or guidance face heightened risks, including poor decision-making, misaligned spending, tax inefficiency, and erosion of family values.

At Sequoia Financial Group, families can draw on a depth of knowledge and dedicated resources designed to help support financial education for heirs and promote thoughtful long-term wealth management. While education is not embedded as a formal step within the planning process, our advisors are equipped to support families who want guidance in preparing the next generation for financial responsibility. These resources can be applied as needs arise, whether heirs are learning core financial concepts, facing early investment decisions, or beginning to understand the obligations that come with serving as trustees, business owners, or stewards of family capital.

By making these capabilities available as needed, Sequoia empowers families to proactively address readiness, reduce risk, and reinforce responsible decision-making across generations. This flexibility allows wealth to be supported not only through sound planning structures but also through informed, capable individuals who are better prepared to preserve and protect what they inherit.

A Proactive Moment That Shouldn’t Be Missed

The transition to adulthood happens whether families are prepared or not. Without a coordinated plan, gaps emerge, creating risk, confusion, and unnecessary stress.

At Sequoia Financial Group, we are here to help this moment. Our multidisciplinary teams integrate estate planning, tax strategy, investment oversight, and family governance to create plans that are not only legally sound but also deeply personal and enduring.

When a child turns 18, having clarity around financial planning becomes increasingly important. With Sequoia, it is built for you and for the generations that follow.

Connect with your Sequoia Financial Group advisor to ensure your family’s plan evolves with confidence, intention, and care.

 

 

Sources:

1. U.S. Department of Health & Human Services – HIPAA Privacy Rule https://www.hhs.gov/hipaa/for-professionals/privacy/index.html
2. U.S. Department of Education – FERPA https://studentprivacy.ed.gov/ferpa
3. American Bar Association – Estate Planning for Young Adults https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/
4. American Bar Association – Estate Planning for Young Adults https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/
5. U.S. Department of Health & Human Services (HIPAA) https://www.hhs.gov/hipaa/for-professionals/privacy/index.html
6. U.S. Department of Education FERPA https://studentprivacy.ed.gov/ferpa
7. Internal Revenue Service – Gift Tax and Trust Guidance https://www.irs.gov/businesses/small-businesses-self-employed/gift-tax
8. American Bar Association – Trust and Estate Law Resources https://www.americanbar.org/groups/real_property_trust_estate/