Is Joint Ownership For You?
WORD OF CAUTION: Don’t think you’re protected just because your assets are held jointly with your spouse, child, or family member. Here are three reasons why you shouldn’t rely on joint ownership:
- Limited Power: While a joint account holder may be able to access your bank account to pay bills or access your brokerage account to manage investments, a joint owner of real estate will not be able to mortgage or sell the property without the consent of all other owners.
- Tax Liability: By adding a family member’s name to your accounts or real estate titles you might be saddling them with gift tax liability.
- Property Seizure: You read that correctly. If your joint owner is sued then your property could be seized in order to pay their debt.
- Medicaid Disqualification: Putting a loved one’s name on a joint bank account or property title can disqualify them from receiving government benefits, such as Medicaid.
Only a comprehensive incapacity plan will protect you and your assets from a court-supervised guardianship or conservatorship and the misdeeds of your joint owners.
We’re Here to Help
Do not rely on joint ownership as your plan—it’s simply too risky and unreliable. For more information, contact Hudack Law today at (877) 314-4309 Toll-free, please visit areas of service (open link in a new tab) or hudacklaw.com (open link in a new tab).