Assets, Owning Them the Wrong Way

Most of us have been taught that a dollar saved is a dollar earned. The use of coupons can save families quite a few dollars a year and add up to something substantial if invested properly.
This brings me to my point. Retirees own many of there assets like there home, and bank accounts in joint tenancy with sole right of survivorship. While this is a simple way to own assets. It could be a huge mistake if:

Your marriage goes down the tubes, your bank accounts could be cleaned out.

If one of you has a liability problem you both could lose everything.

I am not saying this is going to happen, I am saying review your situation.

One of the biggest ways retirees jeopardize their assets is by putting them in joint ownership with the kids. I know most people want to avoid the fees of going through probate which could save them thousands of dollars. When you think about it from the kids point of view putting their name of a valuable asset is a no-brainer. The problem could come when a kid runs into financial difficulty.

Creditors will get an opportunity to take this jointly owned asset from you to settle the debts. Yes it could all be gone.

Changing the registration of ownership to include the kids will trigger what is called a deemed disposition. In other words even though you did not sell the security the government will have considered you to have sold it and tax you on the capital gains.

You have to look at the way you own your assets in context of your whole financial situation. Asset ownership is a serious yet often overlooked area that can turn into a gigantic mistake that can jeopardize your retirement finances.