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Raleigh – When I draft wills for older clients, they often ask about “adding a name” to their bank account – in other words, setting up a joint account. Joint accounts can make perfect sense for seniors who depend on family members for help paying bills and other day-to-day tasks. Joint accounts can also help avoid the need for probate, an often-complex process that requires court involvement to carry out the will.

Undoubtedly, joint bank accounts can make life easier for the right people: seniors and their trusted family members or caretakers. However, they can also make things easier for the wrong ones: people who want to exploit seniors and get access to their money. I hear this concern from a lot of my clients. Their son is in and out of rehab, or their daughter may be easily manipulated by an abusive spouse. Is it safe to add their name to the account?

My clients are right to be cautious, because opening a joint account gives the joint owners virtually unlimited access. They can withdraw any amount of money, at any time, for any reason, without your permission. And the process is irreversible: Once you give someone access to your account, the only way to remove them is to close the account. (The same warning applies if you make someone a co-owner of your home with a new deed; you cannot change your mind and deed it back to yourself unless they agree to give back their interest.)

Therefore, my advice to clients is always: Pick someone you can truly trust, and understand how joint accounts work so both you and your bank know what you want.

If you want someone to have access to your account while you’re alive and receive full ownership of the account when you die, then you want a “joint account with a right of survivorship.” If you want this type of account, make sure the written agreement you sign with your bank clearly states that the account has a right of survivorship.

If you want to give someone access to your account only after your death, then you want a “payable on death” account that names a beneficiary. You can set up a POD account if you are the sole owner of the account, or if the account already has a joint owner and you want the beneficiary to be a third party. Be aware, though, that this will create problems if your joint owners do not agree on the POD beneficiary.

Finally, be aware that setting up a right of survivorship or POD account will not necessarily prevent a portion of the account from being used to pay your debts after your death if you have no other money or assets.

So, when clients ask me about “adding a name” to an account, I tell them that joint accounts can definitely make life easier, but they are first and foremost a matter of trust.

By Jennifer Stuart, Attorney, Senior Law Project

Jennifer Stuart is an attorney in Raleigh with Legal Aid of North Carolina’s Senior Law Project (SLP). She writes monthly articles about legal issues affecting seniors. The SLP provides free civil legal help to North Carolinians who are 60 or older. To contact the SLP, call 1-877-579-7562 (toll-free), Monday through Friday, 9-11 a.m. and 1-3 p.m.

 

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Local News

  • Two People And Two Dogs Attacked By Rabid Fox In Southern Pines +

    Two residents and two dogs were attacked by a fox Tuesday June 27th in Southern Pines. The incident was reported Read More
  • Aberdeen Fire Department Recognizes Promotions At Badge Pinning Ceremony This Week +

    This past Monday night Chief Phillip Richardson with Aberdeen Fire & Rescue recognized several new promotions within the department at Read More
  • Aberdeen Police Officer Receives Lifesaving Pin At Monday Town Board Meeting +

    Aberdeen Police Officer Cody Vaughn was recognized by Police Chief Tim Wenzel at the Town of Aberdeen Board Meeting Monday Read More
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Crime Reports

  • Two Arrested For Conspiring To Provide Drugs To Detention Center Inmate +

    Sheriff Neil Godfrey announced the arrest of two individuals for conspiring to provide drugs to a Moore County Detention Center Read More
  • Sheriff Neil Godfrey Announced The Arrest Of Pinehurst Man $100,000 Bond On Drug Charges After Search Warrant +

    Sheriff Neil Godfrey announced the arrest of Douglas A. Russell following the search of his residence located in the Pinehurst Read More
  • Theft Investigations Result In Prison Terms In Moore Superior Court +

    On June 26, 2017, two individuals were sentenced to active terms of imprisonment in Moore County Superior Court for their Read More
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Obituaries

  • Gail Miller Galvan Obituary +

    Gail Miller Galvan, age 69, died Wednesday, June 28, 2017 at FirstHealth Moore Regional Hospital in Pinehurst. Read More
  • George Guthrie Hearne of Vass Obituary +

    George Guthrie Hearne, 66 of Vass, passed away on June 27, 2017 at Kingswood Nursing Home in Aberdeen. Read More
  • Jean Frances Lennox Keating of Southern Pines Obituary +

    Jean Frances Lennox Keating, 83 of Southern Pines, passed away on June 26, 2017 at the Coventry, Southern Pines. Read More
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Accident & Fire

  • Pinebluff Town Worker Injured In Thursday Morning Traffic Accident On US 1 +

    A Town of Pinebluff employee was injured Thursday when the town truck he was operating was struck in the rear Read More
  • One Airlifted After Motorcycle Accident Sunday Evening On NC 24/27 +

    Two people were injured after a collision between two motorcycles near the Moore County and Montgomery County line Sunday evening Read More
  • One Injured In West End Traffic Accident Sunday Morning +

    One person was injured in a vehicle accident Sunday morning in West End. Read More
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Local Weather

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