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Adding Another Person's Name To a Deed or Account
Five Reasons NOT To Make Someone a Joint Owner
People who want to avoid probate will often add another person as a joint owner on a deed or bank account. However, putting another person's name on property may have negative unintended consequences, including:
#1 Creditors: If the other person owes money to creditors, the property or account may be subject to liens or garnishment.
#2 Changes: Once another person's name is added as a joint owner, it may not be possible to take his or her name off the deed or account without the other person's consent.
#3 Loss of Choices: When a property owner adds someone to the deed, he or she can no longer sell or take out a loan against the property without permission from the other person. If the second owner is younger than 62, it may also make it impossible to take out a reverse mortgage.
#4 Medicaid Penalty: If the owner of the property or account needs long term care at home or in a nursing home, Medicaid looks back five years to see if the person gave any property or money away. Putting another person on a deed or account will likely be seen as a gift and result in a period of Medicaid ineligibility.
#5 Loss of Control: Each joint owner of property has a right to live in a home or use the property. Any joint owner of a bank account can withdraw all of the funds at any time.
Instead of putting another person's name on real property, an owner can file a Transfer-On-Death Deed. This deed can be changed anytime and only takes effect after the owner dies. Likewise, Payable-On-Death (POD) beneficiaries can be named for most bank and investment accounts. Revocable Living Trusts can also be used to avoid probate, although they tend to be more complicated and expensive.
For more information about better ways to avoid probate, contact the Senior Law Resource Center at (405) 528-0858 or info@senior-law.org. |
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New Law Helps Heirs of Small Estates
Banks Will Be Able To Release Up To $20,000 Without Probate
When a person dies without a will and with no more than $20,000 in the bank, a new law permits a bank to release that money to the heirs without probate. Senate Bill 246 amended the Oklahoma Banking Code (Title 6 Section 906) by raising the maximum amount from $5,000 to $20,000. The new law will go into effect November 1, 2011. All of the heirs must sign an affidavit (a sworn statement) stating that they are the only people entitled to inherit and that the deceased person did not have a will. The affidavit will only work if the bank account does not have any other joint account holders or payable-on-death beneficiaries. Banks who rely on an affidavit are protected from liability against others, including creditors, who may later come forward to claim an interest in the account. However, anyone who knowingly signs or submits a false affidavit may be subject to fines and imprisonment. |
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Advance Directive Vs. DNR
Two Very Different Health Care Documents
An Advance Directive for Health Care is a planning document that allows each of us to state what kinds of life-sustaining treatment we do or don't want if we are not able to make decisions for ourselves in the future. It also allows us to appoint other people (health care proxies) to make health care decisions for us. A Do-Not-Resuscitate (DNR) form indicates that a person does not want CPR or other emergency interventions in the event his or her heart or breathing stops. An Advance Directive only takes effect if two doctors agree that a patient can no longer make decisions. On the other hand, a DNR takes effect as soon as it is signed. A DNR is therefore not a planning document, but should only be signed if the person currently would not benefit from CPR. Each of us must complete our own Advance Directive forms while we still have capacity. However, if a person no longer has capacity, others are allowed to sign a DNR on the incapacitated person's behalf. More information about health care planning can be found at the Senior Law Resource Center's website. |
About the Senior Law Resource Center
The Senior Law Resource Center is a 501(c)3 non-profit organization dedicated to empowering Oklahomans to age with independence, dignity, and security by providing high-quality, affordable legal information and services.
Senior Law Resource Center
600 N.W. 23rd Street, Ste. 106
Oklahoma City, Oklahoma 73103
(405) 528-0858
FAX: (405) 601-2134 info@senior-law.org www.senior-law.org |
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Affordable Legal Services Available
Our attorneys provide free information and affordable assistance with basic estate and incapacity planning, probate, adult guardianship, and other elder law issues. We have no income or age requirements.
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Support the Senior Law Resource Center
If you value the information and services provided by the Senior Law Resource Center, please consider making a tax-deductible donation.
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Free Materials Available
The Senior Law Resource Center offers a variety of educational materials, including:
-Your Right To Decide: Oklahoma's Advance Directive & Other Health Care Planning Tools -Who Decides? Caring for Patients with Diminished Capacity -Striking a Balance: A Guide to Adult Guardianship for Guardians and Wards -Grandparenting in Oklahoma: Law & Resources for Grandparents & Other Relatives -Advance Directives & End-Of-Life Guidance in Oklahoma (video) All of our materials are free and available online at www.senior-law.org.
To order printed copies, or for more information, email info@senior-law.org or call (405) 528-0858.
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