Common Misconception: Having joint accounts with my children is an adequate plan.
Initially, this may seem like a great idea. Your surviving family member(s) will be able to take control of the account/property without going through probate. On the other hand, there are many drawbacks to taking this approach over creating an estate plan, and often times this leaves many unanticipated problems or risks to deal with. Some examples include: making your assets a taxable gift, risking the possibility of your child withdrawing your funds before you pass, and not being able to ensure that the funds will be divided equally amongst multiple children.
These are just a few possible scenarios that could pose great risks to your assets being passed in the manner you intended and/or relationships being adversely altered based on financial misappropriations and mishandlings. Having the wrong asset arrangement can not only cause you money, it can significantly impact the quality of life for you and your loves ones. There are many complexities and things to consider. The assumption a joint account will alleviate your problems can be a very big mistake with quite detrimental consequences. It is not uncommon for the average individual to have very little comprehension of the types of Will and Trusts that exists and the differences between them. Let Danna & Associates help guide you to prepare your Will, Trust and other Estate Plan Documents so your family and wishes are appropriately attended to.