We have all heard that a little knowledge can be dangerous especially when gifting money, and when people finally realize that they could lose their home and life savings to a nursing home, well they panic…and start giving all their money to the kids. They even maybe deed their homes to their children and put their children’s names on their bank accounts because they believe that will protect them.
That couldn’t be further from the truth! Asset protection is confusing, and rather than addressing (and paying) for proper estate planning, many retirees are tempted to just give their stuff away. this is a HUGE mistake. In fact, it is the most common – and dangerous – financial planning error made by retirees today.