Attorney, Daniel H. Alexander has over 20 years of experience in Estate Planning, Business Planning and Civil Litigation.
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Tip #4: If your account(s) are in your trust, amend your trust and add a co-trustee with you while you are alive instead of adding someone to your account(s).
Many people will add a child to their bank account so they have easy access to it to help, but the problem is that 1) the child’s creditors can come after the account because they are on it as an owner and 2) many times after death there is confusion as to who should receive that account. Was it a gift to that specific child, or did you mean for it to go to all beneficiaries?
Adding a co-trustee while you are alive can avoid these problems. Once that is done then you update your accounts with both trustees on the account. The co-Trustee then has access to the account(s) so they can assist you easily, it remains part of the trust, so it is not subject to the child's / co-Trustee's creditors, and it is subject to distribution as stated in the trust. Also, the co-Trustee is already on the account(s) at your death, so they have immediate access.