The kids won’t share

17 Feb 2024 · 1 min

Watch on YouTube

1:01

In this YouTube monologue, the presenter shares a cautionary client story to illustrate the dangers of naming children as co‑owners on bank accounts. A mother with a $2 million estate spread across three accounts added a different child to each account—one child was left out entirely—resulting in an unequal split ($1.3 M, $600 k, $100 k). The mother now suffers from dementia and cannot amend the ownership structure, so the accounts will likely remain as‑is until her death. The excluded child and the child with the smallest account are attempting to persuade the two other siblings to adjust the distribution, creating family conflict. The speaker uses this example to warn viewers against adding children to accounts, stresses the importance of proper estate‑planning tools (e.g., trusts, payable‑on‑death designations), and invites viewers to contact him for professional help and to subscribe to his newsletter.

Chapters

Here's a good example of why you should not add your kids to your bank accounts. I met with a client this week who is concerned about the way his mother has her account set up. His mother has an estate of about $2 million, and that money is spread between 3 accounts. One account has $1.3 million, and mom put one child on that account with her. Did the same thing on another account and another child with $600,000. The last account has $100,000 in it, And again, she put a different child on that account with her. There are 4 children in all. She left one of the children out completely. And remember, if you click on my picture and go to my link, you can work with me and get my newsletter. All the indications are that mom intended for the estate to be split equally between the kids. But here's the kicker. Mom now has dementia. She can no longer make decisions on her own. So these accounts are likely going to stay this way until she passes away. The child that was not put on any account and the child that has the account with $100,000 in it are trying to convince the other 2