Joint ownership is not the best estate planning strategy. You may find comfort in having your child on your accounts. You might be thinking that this protects your assets to pass along to your family. While your heart is in the right place, as it turns out, joint ownership is not always the best estate planning strategy. There are other approaches to take instead that will truly protect what you have built up throughout your lifetime to pass on to your loved ones.
Examples of Joint Ownership Gone Wrong
Here are a couple unfavorable situations that may arise with joint ownership as an estate planning practice.
- Let’s start with the family. They are the reason we are trying to protect our assets in the first place. Even siblings with the most team-oriented and family-first upbringing can find themselves in a life-altering conflict with each other – the ones you love. There is no guarantee that a surviving joint owner will honor the intent of the joint ownership. A surviving joint owner has no legal obligation to share your assets with anyone. While we all hope this would never happen, a child joint owner may not share with their siblings or use the assets for your estate administration.
- Also, in a joint ownership each owner’s assets are exposed to the other’s creditors. So, your assets are exposed to your joint owner child’s creditors. Not great while you are alive if your child has debt issues. Even worse for family relations when your children are trying to settle your estate amongst themselves.
While joint ownership is very common and seems like a simple way to provide for your family when you pass, you can see how it is actually not as beneficial as it is meant to be. Instead, it can be loaded with potential negative consequences. A more well thought out plan will save your children from arguing with each other at a time when they likely need to comfort each other. Now you see why joint ownership is not the best estate planning strategy. A better plan is within easy reach with Cornerstone Legal.
Some other options available are:
- Living Trusts
- Beneficiary Designations/Transfers on Death (TODs)
- Ladybird Deeds
With my understanding of these options, I will help protect your treasure, in essence your family, and your assets. I will lay it all out on the line and simplify it for you. I will work for you and your family to come up with an Estate Plan better than joint ownership.
Give me a call at (517) 708-2222 or email me at Katrina@CornerstoneLegalPLLC.com.
