Hazards of Intergenerational Joint Ownership

Originally published in Anderson Kill & Olick , P.C.'s Estate Planning & Tax Advisory, Volume 11 Number 1, Spring 2012

The reasons why a parent adds a child's name to a bank or brokerage account are usually well intentioned. They may include concern about the parent's ability to handle finances due to the ravages of age or illness, or a desire to ensure that funds for the funeral will be readily available upon death. But the consequences that may flow from such a decision, including the rights of creditors of the child to seize the property, disharmony among the other children, adverse gift tax implications and possible estate tax issues if the child predeceases the parent, can make this a very poor choice.