Many well-meaning parents are told that the easiest way to “avoid probate” or “make things simple” is to add one of their children as a co-owner on bank accounts or property. While it might sound convenient, this strategy often backfires—causing confusion, family conflict, and unintended disinheritance.
In this article, we’ll break down why this common estate planning shortcut is a mistake for most families, how asset ownership really works, and what you should do instead to ensure your children inherit equally—just as you intended.
One Child on the Account
Let’s say you have two children and want to leave your estate to them equally. A banker, friend, or even a well-meaning neighbor might suggest: “Just add your daughter to your bank account. That way, she can access the funds when you pass.”
While this sounds like a helpful tip, here’s what really happens:
- If you add your daughter as a co-owner, she legally owns the account with you.
- Unless the account explicitly states “with rights of survivorship,” only your half of the account passes through your estate.
- The other half (or sometimes the entire account) may legally belong only to the daughter—excluding the other child entirely.
Legal Ownership vs. Your Intentions
When you say, “I want everything to go equally to my kids,” you probably assume that will just happen automatically. But the law doesn’t operate on intentions it operates on how assets are titled.
Here’s how co-ownership can go wrong:
- Unintended Disinheritance
One child ends up with the asset, while the other is left out. - Family Conflict
Siblings may dispute what the parent “really wanted.” - Loss of Control
As a co-owner, your child could potentially access or withdraw funds at any time. - Creditor Exposure
If your child has debt or legal issues, your shared assets could be at risk.
A Tale of Two Siblings
Imagine a mother with two children, Anna and Ben. She adds Anna as a co-owner of her bank account to “make it easy.” When the mother passes, the account bypasses probate and goes directly to Anna. Ben receives nothing from that account even if Mom’s will says “split everything 50/50.”
This is not an uncommon scenario. Unfortunately, banks rarely explain the consequences of co-ownership clearly, and families often don’t realize the problem until it’s too late.
What You Should Do Instead
If your goal is to treat your children fairly and avoid complications, here are better strategies:
✔️ Use a Will or Trust
- Specify your wishes clearly.
- Ensure all children are treated equally.
- Avoid disputes and unintended outcomes.
✔️ Designate Payable-on-Death (POD) Beneficiaries
- Many financial institutions allow you to name beneficiaries directly on accounts.
- This allows assets to bypass probate without giving ownership during your lifetime.
✔️ Consult an Estate Planning Attorney
- A legal professional can assess your situation and recommend the best plan for your family’s needs.
- Customized solutions ensure your intent becomes reality not a guessing game for the courts or your children.
Don’t Leave It to Chance
At the end of the day, estate planning is about making sure your loved ones are cared for and your legacy is preserved. While shortcuts like adding a child as a co-owner might seem helpful, they often do more harm than good.
As an estate planning and probate attorney in Charlotte, North Carolina, I’ve seen firsthand how these choices play out and how avoidable the problems really are with the right guidance.
Ready to Protect Your Legacy?
If you’re serious about leaving your assets fairly and intentionally, it’s time to stop guessing and start planning.
👉 Schedule a consultation today to get clear, customized guidance that aligns with your wishes.
Because tomorrow isn’t promised—and your family deserves clarity, not conflict.