I was at a brunch yesterday when one of the women at my table started talking about her mother. She said that while her Mom is in her late 70’s, she is in good health but she wanted to start preparing for the end. Her mother was looking into Long Term Care insurance and wanted to make sure that her daughter was able to do everything for her legally and easily. The woman mentioned that her Mom put her on all of her accounts. My question to her was; “are you a signer or did she make you a joint owner”? Here is why I ask that question;

If you are just a signer on your parent’s accounts, you can transact business for them, pay bills, transfer money as needed, help with the day to day financial transactions without opening up yourself or your parents to additional liability. Let me explain by way of example. Let’s say you have a 19 yr. old son who gets into a car accident and it is his fault. Aside from the entire trauma that you have to deal with regarding your car and his health, there is the other victim and there financial needs. If the other victim decides to sue for damages, you now open up your full financial picture to a suit. Any accounts that you are a joint owner on with your parents now can potentially be attached as an asset in a lawsuit. Likewise, if your parents were to cause an accident.

If your parents were to name you as Power of Attorney for their financial transactions, or simply make you a signer on their accounts, this can be avoided. If your parents are concerned that their assets pass to you without Probate, the simple addition of Transfer on Death to their account titles will allow all of the assets to pass without going through Probate, saving time and taxes.

So let your parents know you want to help but tell them: Please, make me a signer – not an owner

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