Avoid the Shortcuts to Estate Planning

Taking short cuts on your estate plan can create more problems than it solves. Time and time again, we hear clients ask us why they should not put a child’s name on the deed to their house. Unfortunately, owning property with a child can create more problems for the original home owner than anticipated. For example, what if your son were to file bankruptcy? This could effect the interest in your home. If you decide to sell your home and your son’s creditors have filed a lien against your home to collect against him, you will not be able to sell your house without paying off this debt. What if your son is on your home and he goes into the nursing home before you? This could effect his ability to get medicaid or assistance with his nursing home care. Although it seems like an easy solution to avoiding probate and having to set up an estate plan, putting your children’s names on any assets can create more problems than it solves.