As clients age, it is common for them to add a child to their bank account so that bills are paid or in anticipation of incapacity or to avoid probate. A problem may arise if that child owes a debt, lien or maybe part of a lawsuit.
Why is That?
Creditors can legally go after accounts when you are a joint owner. Once money is deposited in a joint account, it belongs to both account holders equally, regardless of who deposited the money.
If the parent added the child for estate planning purposes, such as avoiding probate or planning for disability, there two better options.
- A Power of Attorney can ensure you will have access to a parent's finances in the case of her disability.
- If the parent is seeking to transfer assets and avoid probate, a trust or a transfer on death (TOD) account may make better sense.
If you are a joint owner of an account and want to talk to an attorney about the best way to protect your assets and preserve your wishes, click here to schedule an appointment.
Located in Merion Station, PA, Sallen Law assists clients with estate planning matters throughout the Philadelphia Main Line area including but not limited to Lower Merion Township, Montgomery County, Bucks County, Delaware County, and Chester County. Attorney Sallen is also licensed to practice in the state of NJ and serves Burlington County, Gloucester County, Camden County.