What Happens When a Child Becomes an Adult?
Ever wondered how much it costs to raise a child? In Canada, estimates suggest it will set parents back an average of $293,000 from birth to age 17.1 In the U.S., that figure may be even higher, estimated at roughly US$303,418, even after tax credits.2
But those figures only tell part of the story. For many families, financial support often extends well beyond age 18. Parents frequently continue contributing to post-secondary education or training, helping with the purchase of a first home, or providing housing for adult children who haven’t yet fully launched on their own (some suggest the “empty nester” is increasingly being replaced with the rise of the adult “stay-at-home son” (daughter)).
This creates a subtle but important disconnect: financial dependence does not necessarily align with legal adulthood.
Turning age 18, or 19 in some provinces/territories (the age of majority), is a milestone worth celebrating. It marks a moment of independence and, in many ways, a shift in financial responsibility. But it also triggers a less visible transition: a legal one. At that point, the law treats a child as an adult. And critically, parental authority changes overnight. Many families don’t fully realize the implications until they are already in a situation where access or decision-making is unexpectedly restricted.
Even if a child still lives at home, remains financially dependent or is in school, the legal reality is the same. Without proper planning, parents may find themselves unexpectedly facing certain situations:
- Physicians may be unable to share medical information;
- Universities may restrict access to academic records;
- Financial institutions may refuse to discuss account details;
- Parents may have no legal authority to make medical or financial decisions on a child’s behalf.
These limitations can become particularly challenging if a child is away from home, such as attending college or university, managing chronic health needs or living independently for the first time.
This is where powers of attorney for personal care and property (the names vary by province or territory) can become essential planning tools. They allow parents or trusted individuals to step in if support or decision-making is needed, even after a child reaches adulthood.
For high-net-worth families with significant assets, this transition also raises broader considerations around gifting, trusts and control of assets. At the age of majority, children may gain full legal authority over assets held in their name — sometimes before they are fully prepared to manage them. This makes early coordination around gifting strategies, trusts and asset structuring especially important.
The transition to adulthood happens whether families are ready or not. Without a plan, gaps can emerge that create unnecessary risk, confusion and stress at precisely the wrong moment.
If your child is approaching or has reached the age of majority, it may be a good time to review your existing plans and ensure appropriate powers of attorney and supporting documents are in place. I/We would be pleased to discuss how this fits within your broader financial and estate planning strategy.
1. https://www.statcan.gc.ca/o1/en/plus/5111-how-much-do-canadian-families-spendraising-child
2. https://www.cbsnews.com/news/cost-to-raise-a-child-300000-us-state-by-state/
