A very common estate planning mistake is to maintain joint ownership between a parent and their child. We don’t mean a joint checking account; we’re talking about when a child’s name is added to a parent’s asset, such as real estate.
Why would you do this, you ask? Parents typically add their child to their assets to help pay bills or to avoid probate. Client also do this to help elderly loved ones who need assistance managing their assets.
It is recommend against this practice, and here is why. Let us put the scenario into perspective and discuss an elderly man, Dad, and his daughter, Suzy. Let’s say that Dad adds Suzy’s name as a joint owner on his checking and savings accounts, brokerage account, and his condo.
Real Estate Transaction Coordinator