Adding your child as a joint owner on your bank account creates serious problems: gift taxes kick in over the annual limit, creditors can go after the account, and it complicates your estate. Use other tools instead.
Do not put your kids on your bank accounts. I get so many comments from people suggesting that this is a good idea and a way to get around probate and for the kid to have access to funds. I want to make it crystal clear how I feel about it. This can seem like a quick, easy, cheap way to handle things, you know, just a gesture of love and trust, but it can have extremely negative consequences for both the parent and the child. All right, so let's say you're in your 60s, you've got a kid in their, in their 20s or 30s. They're a very good kid. They've never had any problems whatsoever. Let's say you've got an account with $200,000 in it. You want to put your kid on that account so they can have access to funds if anything ever happens to you. On the face of it, it seems like a great way to handle things, but here are some problems. Number 1, gift taxes. If your child is on that account, they have the same right to that money as you do. You can gift away up to $16,000 a year, but above that, you got to file a gift tax return. Number 2, your child's liabilities. If your child gets into trouble with a creditor and that creditor gets a judgment against them, they can garnish your account for the
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