Top Reasons to Avoid Joint Ownership
There are valid reasons to have assets owned jointly between a husband and a wife. In Florida, one of them is for asset protection should one spouse (and one spouse only) be sued. However, it not necessarily a good idea to have a parent or grandparent add their child or grandchild to their account. Although the intentions may be good, the results can be disastrous.
Here are the some of the top reasons why you shouldn't add your child or grandchild as a joint owner on your assets:
1) If your child/grandchild has creditors, their creditors could come after the asset should there ever be any issues with payment.
2) If your child/grandchild gets divorced, then the ex-spouse could get an interest in the asset.
3) The child/grandchild has the right to take money out of the account, even without your permission.
4) If you should pass away, the child/grandchild does not have to share it with other family members. Further, if the asset is very large, the child/grandchild will have gift tax issues to deal with if they do want to share the asset.
5) Joint ownership can cause a fight between other family members. If you want the child/grandchild to get the asset upon your death, other family members may think that you wanted it to be shared and vice versa. It could also cause hurt feelings because one family member was picked over others.
To learn more about why joint ownership is not necessarily a good thing, contact our estate planning attorney at Wood, Atter & Wolf, P.A. in Jacksonville and Ponte Vedra Beach, Florida.
