Risks of Joint Accounts

Joint bank accounts serve as a useful estate planning tool for passing money to loved ones outside of probate and planning for disability. But while they can achieve these goals, and are useful in certain circumstances, joint accounts also present risks.

To avoid unexpected problems, understand the pitfalls of adding a joint owner to a bank account and the alternative solutions that are available.

The most obvious red flag of a joint account is that you must be sure you trust the other owner, since they will have full access to the account. 

Another potential issue with joint accounts is that it makes the account vulnerable to all creditors from each owner. Creditor issues affecting one owner therefore affect the other owner.

Joint accounts can also affect Medicaid eligibility.

Read more about the risks of joint accounts: Be Aware of the Dangers of Joint Accounts

If you have questions or would like to learn more about how to protect your assets, give us a call at (605) 275-5665.