Why You Should Not Put Property In Your Child’s Name As Part Of An Estate Plan
A good portion of parents with children eventually want to pass on the property they own to their children. Some might think that it is a good idea to put their real estate, home, property, or land in the name of their children while they are still alive. This type of estate plan can be easy to set up and can most likely be done without a lawyer, but it is full of dangers and risks that can pop up and bite you if you are not careful.
Titling your property with a child jointly or what is called in most states joint tenants with right of survivor-ship is an easy way to pass on property to that child. When you die, the property automatically passes to that child without having to go through the probate process. The title must simply be changed from joint ownership to that child’s name after you die and the title will then be in that child’s name. There are numerous reasons why doing this could be a bad idea though. One of the most common reasons that joint ownership with a child may be dangerous is that the child has an ownership interest in the property before you die and this interest could be subject to divorce proceedings, the IRS, or other creditors that your child may have. Your ex son or daughter in law or your child’s creditor can assert their interest in your property while you are still alive because the property is in your child’s name. Your child could be entitled to force you to sell your house if they feel that you are unable to care for yourself anymore and would be able to share the proceeds. Your child could also move their family in with you and become permanent guests.
Knowing When You Should File for Personal Bankruptcy
Spending on luxury goods or personal wants is not really a bad thing–especially if you have the money to pay for it. This is true even if the lifestyle seems lavish. But what if you constantly find yourself running out of money when you need it most or making a purchase using a credit card mostly? Indeed, some people can be unmindful about their finances and cross the line of spending more than what they could possibly earn.
Thus, some people experience personal bankruptcy, or the inability to pay for financial commitment to their creditors. Additionally, bankruptcy is often stereotyped negatively by associating the victim with poor credit and lack of financial management. However, in reality, bankruptcy can happen to anyone: even those who are honest, thrifty, and hardworking and might just have a hard time budgeting wisely.
Signs of Personal Bankruptcy
Firstly, people who may be experiencing or at the brink of bankruptcy may have a passive or apathetic approach to it – a form of denial. This can come in manifested actions like ignoring or avoiding calls from creditors, not replying to urgent notifications, or simply putting off their payments. Victims initially ‘ignore’ the problem for fear of losing credibility or respect form colleagues, families, or loved ones.