It’s a common misconception by many parents that adding a child to their bank account is a good idea, when it comes to assisting with financial issues, for example. However, as a recent Forbes magazine article points out, there are major problems that come with jointly-titled assets. Here are The Top Five Issues With Jointly-Titled Assets:
- Creditors – Jointly-titled assets are subject to the child’s creditors which may try to come after some, if not all, of the assets.
- Divorce – Jointly-titled assets may become fair game to an ex if the child becomes divorced.
- Borrowing – Jointly-titled assets can be susceptible to “borrowing” by the child.
- Ownership – Jointly-titled assets are owned outright by the child upon parent’s death, disinheriting other children.
- Family Feuds – Jointly-titled assets frequently lead to avoidable family disputes.
A seasoned estate planner can help you to establish the best way to manage your financial accounts should you become physically or mentally unable to do so - one that protects your assets and lessens the likelihood for family disputes.
