Estate Planning and Bank Accounts
A question that comes up frequently with Estate Planning clients is: “What should I do with my bank accounts when I have an Estate Plan?” Many times, due to a lack of understanding, they are not set up correctly. This article will discuss what people typically do, the pros and cons of each option.
Most commonly we see people add someone else to their accounts, creating a joint account. One problem with having a joint account that is primarily made of your money, is that you are potentially risking exposing yourself to liability. If that other person has a judgment against them and they’re on your account, then theoretically, they could have creditors attach the money from that account to pay off the judgment.Another reason you might not want to put someone on as a joint account holder is that when you pass away, that person is able to withdraw all of the money in the account. If that is what you wish, that is fine. If it’s not what you want, then you might want to consider other options.
The other thing we see people doing is adding somebody as a signer to their bank account. Depending on what your goals are, this is ok, but there is often a better way to do this through a Power of Attorney over Financial Decisions. This is because, typically, if you’re going to give someone signing authority on your account, it is because you need them to be able to access your finances in the event of an emergency and to pay your bills.
Each situation calls for a unique solution. If you would like to talk more about this topic, give us a call at (702)850-7998, or click here to schedule a complimentary, 15-minute phone consultation with one of our attorneys.
