I have three children. I am considering adding a daughter who lives nearby to my bank accounts. This way, she could access funds if I am incapacitated. Is this a good idea?
-Baffled in Brentwood
It is very risky if you are considering adding your daughter as a joint tenant (i.e.: joint owner), to your accounts.
By doing so, the accounts will legally belong to both of you. If your daughter has a bankruptcy, creditor problem or divorce, the account could be seized.
Additionally, after you pass away, she would be the sole owner and may be under no obligation to share the funds in the accounts with her siblings. That could be problematic!
Instead, consider a Living Trust or Durable Financial Power of Attorney. If you become incapacitated, valid use of these documents can give your daughter legal access to the funds during a time of need without giving her full ownership.