Our previous two posts shared some of the risks associated with making seemingly small “do it yourself” changes to an estate plan.
Today we’ll focus on some safer alternatives!
For example, instead of adding children as co-owners, you might consider consulting with an experienced estate planning attorney to discuss alternative strategies such as creating a trust or designating beneficiaries through payable-on-death (POD) or transfer-on-death (TOD) arrangements.
If your concern is that you want your children to be able to help you manage your finances or help you write checks and pay bills, you can achieve the same results by using a durable power of attorney for financial matters. This document allows your children to pay bills and access your funds when you are unable to do so yourself without making them a joint owner.
Further, when paired with a revocable trust, these options can allow you to retain control over your assets during your lifetime, receive the help and assistance you need, and avoid probate while ensuring your assets pass smoothly and efficiently to your children upon your death.
Conclusion:
While the desire to DIY and involve your children in your estate planning is understandable, adding them as co-owners of your bank accounts or real estate can have serious drawbacks.