What about protection from creditors?

If you think your children don’t have creditors, think again. Do they have credit cards, a mortgage, or anybody else they owe money to? If so, they have creditors.

If they default on the credit (loan), then the creditors will try to come after any money they have. That includes inherited money and current money.

To protect them against creditors, the money and home can stay in a trust that has “spend thrift” provisions to keep the creditors from attaching to the principal in the trust.

Also, this is a good time to mention not putting your children on your bank accounts. The reason is the same, their creditors can reach through and get your money. Financial predators can reach through and get your money.

Can I protect myself from financial predators and creditors?

Don’t put your children on your accounts.

If a child defaults on credit, the creditor can look to the account you put your children on. A durable power of attorney is a much better way to give them check writing authority. Co-trustee on your trust is another way.

If a financial predator gets your children’s financial information, they could reach through into your account and drain your money out too.