Can I avoid probate by adding my child to every account?

Question

A friend told me the easiest way to avoid probate is to add one of my children as a joint owner on every bank and investment account. That sounds simple, but it would also mean the child legally owns part of the account while I am alive. Could adding one child create creditor, gift, control, or inheritance problems even if the only goal is to make things easier after my death?

Soradin · Accepted Answer

Adding an owner can give immediate rights and expose assets to the child's creditors, divorce, or poor decisions. For the issue described here, probate avoidance is usually achieved by coordinating ownership, beneficiary designations, transfer on death tools, and trusts. In a probate or estate setting, avoiding probate is not the only goal because creditor protection, taxes, control, and family fairness also matter. Major changes in family, finances, or health are a good reason to review the plan to make sure the documents still match what you want.

Can I avoid probate by adding my child to every account?

Soradin

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