The Significance Of Naming Your Children As Joint Owners Of Your Bank Accounts

You can name your children as joint owners of your bank accounts. Doing so can make it much easier for them to access the funds in these accounts after your passing.

Even though the above is true, naming your children as joint owners of your bank accounts can be a bad idea. This isn’t always the case, but it can be.

Going over the benefits and downsides of naming your children as joint owners of your bank accounts, and speaking with a Florida estate planning lawyer at Millhorn Elder Law Planning Group will help you protect every single one of your assets. 

What Does It Mean To Name Your Children As Joint Owners Of Your Bank Account? 

You are the owner of your bank accounts. And, what this means is as follows: you can place funds into that bank account, put these funds into different accounts, and take funds out of your bank account.

Just as an example, if you want to take $500 out of your bank account to buy a flight ticket, you have the ability to do so at nearly any time.

If another person wants to work with the funds in your bank account, they can only do so by obtaining some form of prior permission. This could be a check you write to them or a wire transfer; among other possibilities.

Naming your children as joint owners of your bank account gives them unlimited access to your bank. If they want to take out the funds in your account – or do something with them – they can do so with ease.

Is Naming Your Children As Joint Owners Of Your Bank Accounts A Good Idea? 

The answer to this question is “It depends.” Naming your children as joint owners of your bank accounts will, in most cases, let your bank account go directly to your children in the event of your passing.

A good example of the above is as follows: if you pass away, and your daughter is a joint owner of your bank account, then all of the money in this account will go to your daughter.

The account will not need to go through probate. And, neither will the funds. This will save your daughter – or any other beneficiary – a lot of time – probate often takes nine months, give or take – and money.

Even though the above can be very useful, naming your children as joint owners of your bank accounts means that they can access the account while you’re alive.

Your children could take money out of your bank account without you being aware of it. Or, if they get in any legal trouble, the money in your bank account could be confiscated in order to satisfy any legal issues.

To go along with the above, joint ownership is rather complex. There could be tax complications and unexpected issues that arise, after your passing, that make it more difficult for your beneficiary to hold onto the account.

What Should You Do Instead? 

To ensure that your beneficiaries receive the money you wish to give them, you can develop a trust that incorporates every single one of your assets.

A good trust will bypass probate, making it easy for your beneficiaries to get what you want to give them. And, on top of that, a trust will keep your assets secure. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a trust that protects your assets, you must work with someone who can help. Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today and we will help you develop a trust that satisfies your wishes. 

Sources:

law.cornell.edu/wex/probate

law.cornell.edu/wex/trust