As people get older, the asset succession and access becomes an important topic to address. Unfortunately, most people don’t know what they don’t know when it comes to proper estate planning. A common strategy used by elderly individuals is to add their child(ren) to their house deed and their bank/deposit accounts to “make things easier” for them. Unfortunately, this type of planning strategy comes with some substantial risks.
Ownership Cuts Both Ways
Adding a child to your accounts and home may allow them to have access to your money, but that comes with some significant downside. If you have a parting of ways, for whatever reason, your child may be able to withdraw your money without your consent being needed. They may also act as a blocker to selling your home if needed.
Creditor Attachment
Joint ownership with your kids means that your kids have an undivided ownership interest in your assets, which will also make them available, at least to the extent of the ownership interest, to the creditors of your kids. This may include financial creditors, personal injury plaintiffs, or spouses during a divorce. Ownership comes with the pros and the cons.
Estate Involvement
If your child owns an interest in your assets and predeceases you (dies before you do), their plan or lack of a plan (intestacy) may have an impact on your assets. If they are on the deed to your house, their heirs may now become your co-owners instead. Joint ownership of financial accounts with one child may also result in your other children, if any, being cut out of their share of that/those accounts. Joint ownership of your home may have the same result depending on how it’s titled.
A Better Way
Generally the interests of access and ease of succession can be accomplished without adding kids to your assets. A Financial Power of Attorney may be used by a named agent (also known as an “Attorney-in-Fact”) to access your financial accounts or sell your home if needed. And adding a “TOD” (transfer-on-death) or “POD” (payment-on-death) to your children can allow them to receive your accounts immediately after you pass.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
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How We Help North Carolina Families
Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
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