Adding a child’s name to your house deed or bank account seems like a simple way to avoid probate. Many people believe this small paperwork change will make things easier for their families. Unfortunately, this shortcut is one of the most common estate planning mistakes, and it can create serious financial and legal problems that take years to fix.
These quick fixes often override your actual wishes and expose your assets to risks you never considered. Our Aurora, IL estate planning attorney has 20 years of experience and can help you avoid mistakes like this. We start by making sure we truly understand your long-term goals, and then work backward to find great solutions.
How Do Joint Ownership and Transfer-on-Death Accounts Work?
When you add someone’s name to a deed or bank account as a joint owner, you create what Illinois law calls a joint tenancy with right of survivorship. Under 765 ILCS 1005/1, this means that when one owner dies, the surviving owner immediately and automatically owns the entire asset. The same principle applies to transfer-on-death and payable-on-death account designations.