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A Better Way
It is crucial to have a proper power of attorney for bank accounts or that it is in the trust’s name. The trust will control, and the kids can have control as successor trustees if you’re disabled or at death.
The same thing for the house. You can plan through a trust, or other types of deeds that we can draft that will leave the kids the house after death, but not add them on currently. It helps protect the house, in a sense, from any other creditors or tax issues that you may have. That would also be a vulnerability. If the child were to get divorced and the child’s name was on the house, then that ex-spouse could come after the parent’s home.
With jointly held assets, you have creditor issues. You have ex-spouse issues. These things play a role, and people don’t realize this until it’s too late. Maybe you have multiple kids, but you add only one on the account, and then that other kid can disinherit their siblings because they’re on the account. Legally they don’t have to share the account, and this is a hidden problem with joint accounts or jointly held property.
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