putting adult child on our bank accounts?

[KellyJef]

I am so angry.

DH and I went to HSBC today to find out how to add our 30-year old daughter to our accounts. DH and I both have health problems and we want to make sure that Kelly would be able to take care of our bank accounts in case we were incapacitated.

Well, we were told that only two people can be on an account: that I would have to remove DH from the account if I wanted to add Kelly on it.

I told the rep that I thought that was crazy and what would be the rationale for HSBC to have that rule. He said that this was standard practice for all banks.

Can that be true??? I will be checking other banks tomorrow and switching banks if I find out that HSBC is full of baloney

[jpg7n16]

That is not standard practice for all banks.

I worked for a bank before. You could have as many owners as your heart desires. Provided that they all showed up in person with valid ID's.


From the Wells Fargo glossary: https://www.wellsfargo.com/customerA...k/glossary.jsp

Joint Account Ownership: An account held by two or more joint owners.

[jpg7n16]

Oh and you should speak to an estate attorney in your area about preparing a springing durable power of attorney.

springing - means it doesn't come into play until you are incapacitated
durable - means the power of attorney can survive incapacitation, but not death

Pretty much would give your daughter power over your assets if and only if you become incapacitated, and would allow her that power until you die. At which point the executor of your estate would take over to distribute your assets as directed by your will.

[frugalgirl]

After my mother died, my father added my brother and I to some of his bank accounts with no problem (CD's as well). You should do some estate planning though. If you have other children, there could be complications if your daughter is on your bank accounts and she wants to distribute those assets to others upon your death. My father's accountant recommended that we had either all children on the accounts or none to let the will/trust dictate the distribution to keep things simple.

[Seeker]

See if HSBC will allow you to add your daughter to your husband/your joint account as a power-of-attorney.

For more info, read the last two sections here (note that this is Maryland law and may or may not apply to your state):

Personal Bank Accounts: What's Best for You

[behing01]

This is certainly not true as I have had an account with over 6 people on it before for business purposes. This is a HSBC policy and I am sure if you threaten to move your accounts they will find a way to make sure you get what you need.

[disneysteve]

You can add her to the account, but you shouldn't. You should give her power of attorney instead. If you add her to the account, that money becomes hers immediately. I'm sure you trust her but if anything changes, she could clean out the account and there is nothing you could do about it. That money also becomes her asset in the event of any type of legal action against her. Keep the money in your name with her as POA.

[cschin4]

Why do you feel the need to add her to your accounts? Just make her the beneficiary and she would get those then. I think having her on your account could create problems. Would any money put int then be viewed as her money when she was doing her taxes, etc. There could be tax implications? I don't know. And, What is the point? I really don't think you should do that as you never know and you shouldn't comingle your assets with anyone other than your spouse.

[KellyJef]

You can add her to the account, but you shouldn't. You should give her power of attorney instead. That money also becomes her asset in the event of any type of legal action against her.

Thanks for the warning about our money becoming an asset to her. She is actually involved at the moment in several lawsuits involving her builder and he has threatened to bankrupt her.

We will be taking your advice and going the POA route instead of putting her on our accounts.

Do you happen to know if she would have to come with us to the lawyer's office to do the POA? Getting us all together is problematic.

[PMMM]

I have POA for my mom. I actually had the POA done at the bank but I had to be their to sign the doc. You can do it through an attorney as well but my Bank did it for free. I like free. I have had no problems with the bank or any other entities with the document.

You can also get the form online. It's a very common thing and is done all the time. I have a health POA and a financial POA for my mom.

[Seeker]

Why do you feel the need to add her to your accounts? Just make her the beneficiary and she would get those then. I think having her on your account could create problems. Would any money put int then be viewed as her money when she was doing her taxes, etc. There could be tax implications? I don't know. And, What is the point? I really don't think you should do that as you never know and you shouldn't comingle your assets with anyone other than your spouse.

People are living longer than they probably should these days. They are living beyond their brain's health in come cases, and in other cases, they are living with their mind intact, but a failing body. No matter which way we age, there comes a time when the elderly may not be able to do everything that they used to be able to do. It becomes difficult for the children to get help for their ailing folks without such paperwork.

My Dad had no such paperwork; he passed away recently at 83. My brother struggled with getting information from the hospitals and personnel with treatment and recommendations for Dad's ailing health. Because legally, the hospital personnel are not supposed to talk with him about those things. They told him to get a POA. How do you do that when it's too late? How do you do that when the person that could grant you the POA is too far gone to be able to make a legally binding agreement? Dementia led to Altzheimers and now he's gone.

Beneficiary status is also too late.

If OP needs her daughter to take care of bills and other financial things, then a POA is necessary. It makes it easier for the duaghter to handle financials without guff from anyone at the banks where she is so named. Parents should each name her a POA, on the same joint account that the folks possess. Or on all of them. POA has no tax ramifications. Upon death of both parties, the POA turns over all to the estate.

If health is also showing signs of declining, the folks should also name her POA on their medical records. Exact desires need to be enumerated with the duaghter; she should know exactly what her folks want or desire as far as DNR or life continuing services under machinery.

This is not a easy subject.... but often a necessary one. Without these legal papers, things are made much more difficult for the children who remain to try to help their ailing folks in whatever way possible.

[KellyJef]

If OP needs her daughter to take care of bills and other financial things, then a POA is necessary. It makes it easier for the duaghter to handle financials without guff from anyone at the banks where she is so named. Parents should each name her a POA, on the same joint account that the folks possess. Or on all of them. POA has no tax ramifications. Upon death of both parties, the POA turns over all to the estate.

This was good advice.

We all (including my SIL, BIL, MIL, FIL and DH and me) met with the elder care attorney this morning and he definitely advised MIL and FIL to give POA to DH and his sister.

Since DH's sister and her husband as well as DH and me are all in our 60's with grown children, we ended up giving POA's for our children for all of us, too.

It ended up being a very fruitful visit since all three couples have now gotten POA's.

He spent over an hour with us and is charging us $300 per couple for the 6 POA's so we are satisfied.

[James00]

What does that exactly mean ? Child and adult can have joint account together.And Child could not have account.

[Seeker]

What does that exactly mean ? Child and adult can have joint account together.And Child could not have account.

There's a great difference between an "adult child" and an "adolescent (or younger) child."

It's fine to create an account just for children's savings and teach them young to do just that.

But that is the child's money and the adult is not likely to steal from the child (though it does happen sometimes).

Here James, they are talking about adding an older adult child to help take care of the financial business of folks that may not be able to handle that task in the future. This is the adults' money.... not the childs'... and therein lies the potential problems.