From the Chair — Jennifer Remondino
Adding a child as a joint owner to your bank account to help you pay bills might sound appealing, but before you do this, consider some downsides of joint ownership:
- Your child becomes an owner of those funds. If your child has a creditor problem or become embroiled in a divorce, bankruptcy or litigation, your funds could be used to pay their debts.
- Adding a joint owner may create a gift to the child and negates the marital deduction, which could lead to estate and gift tax issues.
- Your child directly inherits the account funds to the exclusion of your other children. Even if your child was inclined to share the money with siblings, the child will have gift tax considerations for doing so.
Ask your Warner attorney about better options for your child to help you with your finances.