Should you add your child's name to your deed and bank accounts?

Should you add your child's name to your deed and bank accounts?

Attorney Tom Olsen: Susan says, "Should I add my son's name to my bank account?" I guess she's that meaning, does she make her son a co-owner of her bank accounts. What do you think about Susan?

Attorney Chris Merrill: Susan should not add her son as a co-owner to her bank account. Why, because if her son is sued in any way, not even any fault of his own, the person that sues her son or goes after her son can also now go after her money as well. Susan says, "Yes, but I just want to have my son be able to pay bills for me if I can't." Susan, what you should have is a financial power of attorney.

A financial power of attorney would allow your son to pay bills on your behalf if you are not able, but it also completely protects that account. We say keep it in your name only and do not add your son as a co-owner but have a financial power of attorney instead.

Attorney Tom Olsen: Chrissy, when we do estate planning for people, we do what's called an action plan. They walk out of here with a one-page piece of paper saying what we're going to do for them at Olson Law Group in Orlando, what they need to do. I've actually recently added something to my action plan and that is this, s that if you, to the client, if you have an everyday checking account that has less than $10,000 in it, so relatively a small amount of money, that would be one account that I would want you to own jointly with one or more of your children.

For big accounts, keep them in your name. If the kids need to get access to them, they're going to use the financial power of attorney we do for you. On an everyday checking account, I think it's so convenient for the kids to easily get access to the money to pay bills for mom or dad with this small amount balance checking account. I think it's part of our plan from now on.