Should you add your child's name to your bank account?
Should you add your child's name to your bank account?
Attorney Tom Olsen: Louise, you're on NewsRadio WFLA, go ahead.
Louise: Hello, and good afternoon, Tom Olsen, and I really appreciate this little program. I am 74 years old, and I live by myself. I own my own home. I probably owe a quarter of the value. I don't have a whole lot of income or savings, I have probably 200,000. I only have one child. I do have a will per se. That doesn't cover everything unfortunately because he has had financial problems so I didn't want him on the home in case someone wanted to come up to the home and they could probably secure a lien on it if it has his name on it.
Attorney Tom Olsen: Right, yes.
Louise: That's one of my problems, and he's not very good with money but you know something, when I'm gone, I'm gone, and there's nobody else as far relatives that are distant. They're not close relatives, but my main question is how to protect myself with a will. I know I could do a quick claim deed, but I'm not sure whether they even do those anymore.
Attorney Tom Olsen: Louise, here's the bottom line. Louise, we know that we do not want you to add your son's name to any of your assets, bank accounts, or home because if you did and he got sued, his creditors would be coming after your money and your home. Leave those assets in your name only, but what we do want to do for you, Louise, is to avoid probate, so that when you pass away these assets will go to him automatically, no probate required. Louise, the way to do that is on your bank accounts keep them in your name only, but make them POD, payable on death to your son.
Louise: I already have that done.
Attorney Tom Olsen: Good, so they're in your name only, they're not subject to his creditor claims, and then, Louise, for avoiding probate on your home we have a great tool called a ladybird deed. It's a deed that we would prepare. It would state that as long as you're alive, it is your home to do with as you please. No restrictions whatsoever, but upon your death, your home would automatically go to your son. No headaches, no hassles, no probate.
Louise: Wow, what a strange name, ladybird.
Attorney Tom Olsen: It's named after Lyndon Johnson the former president, his wife Lady Bird Johnson. He invented it, so they named it after him. Louise, we'd be pleased to assist you at the Olsen Law Group in Orlando with getting that deed done.
Louise: That sounds awesome. I do have financial coverage in case something not covered but documents to protect my interests for anything that I may need. If I have a stroke or so on, and also a health surrogate. I have probably a form that is probably outdated, because I've had it for probably 10 years, so I probably need a [unintelligible 00:02:58]
Attorney Tom Olsen: Louise, while we're at it, we would like to review your existing powers of attorney and your will just to make sure they're all up to date. Louise, at the Olsen Law Group in Orlando, we can definitely assist you with that.