A joint bank account is exactly what it sounds like – an account shared by two or more people, each with more or less equal access to the account’s funds. This means any account holder can access or manage the money as they see fit without requiring approval from the other holders. Many married couples use joint bank accounts to pool resources, but these accounts are also increasingly used to help families assist older family members in managing and planning their finances. If assisted living or memory care is imminent for you or an older family member, creating joint bank accounts is one potential tool at your disposal to simplify life going forward.
Advantages of Maintaining a Joint Bank Accounts with Senior Family Members
There are many solid reasons to consider this a joint bank account with a senior family member. These include:
Simplified Financial Management: With a joint bank account set up, family members can directly oversee the senior’s financial obligations and help plan how they will be paid. If your family member is living in assisted living or memory care, you must make financial plans to pay for their arrangements. Instead of relying on receiving accurate info from your family members regarding deposits from investments, pensions, or social security, you can simply access the funds through a joint account and pay bills.
Immediate Access to Funds in Emergencies: Emergencies happen, and when they do, having joint access to funds means that a trusted family member can quickly cover unexpected costs for their senior family member. Even if a senior has health insurance, it isn’t always enough to cover immediate costs. Having access to a greater pool of available resources can allow family members to care for injured or otherwise incapacitated seniors who can’t utilize their existing finances.
Fraud Monitoring and Prevention: Some seniors, especially those with cognitive or memory issues, are vulnerable to online scams and financial abuse, many of which are becoming increasingly complex in the modern day. With shared access to a joint bank account, family members can monitor transactions for any suspicious or unauthorized activities, quickly reporting them to the bank to stop money from leaving the account.
Avoidance of Probate: Joint accounts, specifically those created for seniors and their family members, often come with rights of survivorship. When one account holder passes away, the funds automatically transfer to the surviving holder without the need for probate.
Despite these advantages, joint accounts do come with some risks you need to evaluate. Since account holders are equally liable, the senior’s funds could be exposed if the co-holder has outstanding debts or faces legal claims. Family conflicts may also arise regarding using the funds if other relatives feel left out of financial decisions.
If you have a senior member of your family that you want to take care of as they age, make sure you talk to financial advisors and experts who can determine what issues you may face. Don’t give broad access to many family members without a close relationship with the senior in your life, and make sure your inclusion on the account doesn’t negatively impact their retirement.
If you or your family member are considering assisted living or memory care, joint bank accounts are just one tool you can use to simplify finances and enter this new living arrangement with increased certainty. If you have any other questions regarding how life will look once you move into a senior residence, we are happy to help.
Contact A Banyan Residence today to schedule a tour of our facility and see how assisted living and memory care can benefit your senior family member’s life in Florida.
