My Neighbor Says Add My Child to my Asset

We all have them…A well-meaning neighbor.

Yours may have an interest in law. And thanks to popular “legal” television shows, he or she may attempt to give you advice based on fictional or so-called “real” cases.

For example, if your neighbor tells you to add your son or daughter to your bank accounts, you may find yourself in a precarious situation. The money you’ve worked for may disappear within a matter of minutes because your adult child has access to your funds.

Keep reading to learn why you may not want add your son or daughter to your asset. Getting joint accounts with children may cost you financial and personal heartache.

Adding Your Adult Child to an Asset May Be a Mistake

You probably didn’t think adding your son or daughter to your bank or brokerage account could create problems for you, but it could. How? By giving your adult child access to your money, he or she can withdraw it. Plus, creditors can attach a lien to your assets and possibly wipe out your funds.

Another consequence of adding a child to an asset is hurt feelings. If you have other children, they may believe you’re showing favoritism. And keep in mind that upon your death, the child whose name is on the account automatically inherits the money. Why? Because that’s law in most states – your other children may feel snubbed and hold a grudge against their sibling.

Hopefully, your son or daughter isn’t separated or in the process of getting a divorce. Why? Because
your son or daughter’s spouse is entitled to a portion of the joint account you have together. Can you imagine if you’re not on good terms with your soon to be ex-daughter or son-in-law? He or she is about to receive a bonus thanks to your joint ownership with your son or daughter.

If you’re thinking about adding your adult child to the deed of your house, you may want to reconsider. It’s true that probate can be avoided; and it’s easier for your son or daughter to take possession of the home at the time of your passing. However, your home can be subject to your child’s debts (no different than joint accounts) and could be considered an asset if he or she gets divorced.

Adding your son or daughter’s name to your bank accounts, investments, property, etc. may not be the best decision for you, even though your neighbor thinks it is. When you visit your bank, ask the bank officer to give your child a signature authorization instead of joint ownership. Why? Because your son or daughter can write out checks to pay your bills but can’t withdraw money. Most importantly, your child’s creditors can’t take your money.

If you’re concerned about your children having access to your funds and property if you’re incapacitated , consult an elder law attorney . She can help you determine the best course of action for you. Plus, you’ll realize that taking advice from your neighbor is not a wise decision.

Consult an Attorney before Getting Joint Accounts with Children

Your children are the most important people in your life. However, they may be immature adults who could possibly steal from you if you have joint investment accounts with them. If you add your son or daughter to the deed of your home, their creditors may put a lien on your house. Or even worse, your child may try to kick you out. This has happened to some parents.

Keep in mind that adding your child’s name to your bank account may seem like a good idea because he or she could withdraw money to pay your bills if you’re on vacation or in the hospital. Even though your neighbor thinks this is a great idea, the consequences may outweigh the advantages.

Before you add your son or daughter to your assets, speak with an attorney who can give you expert advice so that you can make an educated decision about your investments and property. In fact, you may want a “trusted” third party to handle your assets.

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