When one is developing an estate plan there is a common practice that some individuals engage in. That practice is putting their name on a bank account with their child or what is likewise referred to as having the savings account entitled jointly. There are factors to title a checking account jointly with a child that would convince somebody that this would be an excellent idea.
If a child owes loan or has debt, then that child’s financial institutions could attach the financial obligation to the collectively bank account while you are still alive to pay debts that a child may potentially owe.
The child might likewise clear the account themselves because their name is on the account collectively. A much better method to title a bank account is to make a POD (payable on death) classification on the account. A basic long lasting power of attorney allows a child to access a bank account in the case of inability of a moms and dad without having to collectively title the bank account.
Jointly entitling an account with a child can be an easy and inexpensive estate plan, but dangerous.