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The Dangers of Estate Plan of Jointly Entitling Bank Accounts with a Child

When one is coming up with an estate plan there is a typical practice that some people take part in. That practice is putting their name on a checking account with their child or what is also called having the savings account entitled jointly. There are reasons to title a checking account jointly with a child that would persuade somebody that this would be a great concept.

If a child owes cash or has financial obligation, then that child’s lenders could connect the financial obligation to the jointly bank account while you are still alive to pay debts that a child might possibly owe.
The child could likewise clear the account themselves since 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 general resilient power of attorney enables a child to access a bank account in the case of inability of a parent without having to jointly title the bank account.

Jointly titling an account with a child can be a simple and inexpensive estate plan, however risky.