Place assets in child’s name?

 Here are some risks with transferring of assets to a child to avoid nursing home bills. This was is a common ‘do-it-yourself’ strategy prior to 2006 and was sometimes even suggested by professionals who aren’t aware of better options.

 1. What if that child had a serious injury or illness and needed nursing care before you do? Your assets could be used up to pay for their care before you need to use them. If the asset is in their name it is considered theirs and can be used to cover their expenses.

 2. In one case a responsible daughter was given title to her parent’s home. Then the daughter’s husband died suddenly. She eventually met another man. He treated her very well, but he developed a gambling addiction. She bailed her lover out by placing a mortgage on the family home. He created more financial problems. They lost the home and Mom and Dad were out of a home even though they were still healthy. True story –happened here in NB before 2006

 3. One couple put money in a joint account between their two sons…. That creates a double jeopardy. Now, if either son encounters a health or personal problem all of their money in that joint account may be accessed by either son’s creditors.

 4. Unforeseen legal issues. We never know when a child might be assumed responsible for some harm to another – what if the child gets sued? It could be an unintentional accident not covered by insurance but still may be open to civil law suit.

 5. Could unforeseen market changes cripple the child’s business or career and leave them vulnerable to creditors?

 6. Could your child’s offspring (grandchild) develop a critical illness or injury needing nursing home care? This care might have been provided by the province if their parent didn’t have assets in their name?

This list by no means covers all the ways you could lose all your assets by transferring them to a child’s name. For your own sake please contact us before you proceed. We have better strategies. Our service is free. 800-471-0411 or email [email protected]

Young People should be purchasing Long Term Care Insurance – If you are older or in poor health we different options available for you, but please tell your son or daughter to call us for a free quote on a policy that’ll pay nursing  care at home or in a nursing facility so they won’t have to worry about this issue.