[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.22.2″ _module_preset=”default”][et_pb_row _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.22.2″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n
Perhaps because they do not understand the consequences, I have seen many people take \u201cshortcuts\u201d to avoid probate.\u00a0 <\/span>Last column, I gave the example of parents who transfer their home to a child so that the home could be sold after the parents pass, without going through probate.\u00a0 <\/span>That shortcut may actually cost more money than if they had simply used the probate process.<\/p>\n Financial cost is not the only risk when shortcuts are used.\u00a0 <\/span>Shortcuts also mean giving up control of your assets and how they will be distributed.\u00a0 <\/span>In fact, those shortcuts may cost you control over those assets while you are still alive.\u00a0 <\/span>In my prior example, the loss of control occurred when the parents put the house in the name of someone else.\u00a0 <\/span>I am aware of more than one situation in which that decision cost the parents far more than they anticipated.<\/p>\n Another common example is a parent who adds a child as a co-owner on bank accounts, investments and the like.\u00a0 <\/span>The advantage is that the child can assist with paying bills, etc. and, upon the passing of the parent, can take over the account without probate.\u00a0<\/p>\n For most, the trustworthiness of the child is the most obvious risk.\u00a0 <\/span>If I add my child to the account, I have given that child the authority to withdraw and spend that money.\u00a0 <\/span>I have given someone else control over my money.\u00a0<\/p>\n I realize that parents do not put a child on accounts if they don\u2019t trust the child.\u00a0 <\/span>My response is that these problems arise more often than you realize.\u00a0<\/p>\n However, there is another significant risk that is not so obvious.\u00a0 <\/span>Even a trustworthy child is not immune from their own challenges. \u00a0 <\/span>If those challenges include money problems, your child\u2019s creditors may be able to come after your account to be paid back.\u00a0 <\/span>Additionally, I have dealt with several cases in which, after the parent died, a fight about the bank account occurred between the child left on the account and the remaining children.<\/p>\n There are safer options which allow you to maintain control of your estate now, and after your passing.\u00a0 <\/span>Do not let \u201cshortcuts\u201d jeopardize what you have spent a lifetime building.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Perhaps because they do not understand the consequences, I have seen many people take \u201cshortcuts\u201d to avoid probate.\u00a0 Last column, I gave the example of parents who transfer their home to a child so that the home could be sold after the parents pass, without going through probate.\u00a0 That shortcut may actually cost more money […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[16,25],"tags":[20,54],"_links":{"self":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377097"}],"collection":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/comments?post=377097"}],"version-history":[{"count":2,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377097\/revisions"}],"predecessor-version":[{"id":377099,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/posts\/377097\/revisions\/377099"}],"wp:attachment":[{"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/media?parent=377097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/categories?post=377097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wrightlawidaho.com\/wp-json\/wp\/v2\/tags?post=377097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}