Should I Add my Adult Child to My Bank Account?
Many people believe that a "hack" for avoiding probate or enabling their children to assist them as they age is to add their children to their bank accounts. You heard from your barista, whose neighbor's cousin's non-attorney boyfriend said it was a good idea. This strategy sounds fantastic in theory, but it often backfires. There are many reasons why this approach could end in disaster for both you and your children. Downside to adding your children to your account The downsides to adding someone to your bank accounts can be significant. On a joint account, whether it's a bank account or investment account, the person you add has the same rights and ownership of the account as you do. The legal consequences of this joint ownership can be devastating. This includes: Stolen Funds. Once your child is listed as an account owner, they can withdraw some or all of the funds in the account without consulting you. While your child may be someone you trust, the temptation...