Truth be told, I can’t begin to count how many times I have had a discussion with a client about the dangers of adding a child’s name to their bank account in later years. Most people think that’s all they are doing. . . adding a child’s name to their account. However, the reality is much starker.
Adding a child’s name to your bank account almost always means you are actually making them a joint account owner, perhaps even with right of survivorship. At the very least, this means your child legally owns half of your account assets. At the most disastrous, this means your child will become the sole account owner of that account upon your passing, regardless of what your will says and to the exclusion of any of your other children.
Moreover, your child’s ownership interest in your account during your life has even exposed your account assets to your child’s creditors and potential creditors. These creditors and potential creditors may be due to a child’s financial distress, but also due to a pending divorce or judgment due to a car wreck. Can you really afford this type of exposure?
To learn more about the dangers of adding a child to your bank account for financial simplicity and ease of probate, click here.