ABA Family Legal Guide

The Rights of Older Americans

A Right to Control Your Own Affairs

Joint Ownership

I have most of my property and bank accounts held jointly with my spouse and an adult child. Isn't this good enough to ensure management of my property if I become incapacitated?

No. Joint ownership, or joint tenancy with right of survivorship, is a common and simple form of ownership for property such as your home, cars, securities, and bank accounts. The right of survivorship means that when one joint owner dies, the surviving owner or owners own 100 percent of the property. It is a convenient way to allow another person access to property or money you have in a bank account or to deposit or write checks on your behalf.

However, joint ownership is not a substitute for other planning tools because it has serious disadvantages. For example, an untrustworthy joint owner may withdraw all the money in a bank account and leave you with nothing. It is possible to challenge a co-owner's improper use of your money, but it may be difficult. In some states, creditors of a co-owner may be able to reach your account, even though that person is only listed on your account to help you manage your money. In addition, being listed as a co-owner of a bank account could affect the co-owner's eligibility for public benefit programs such as Medicaid. Finally, transfer of a home, a car, or securities normally requires the signature of all owners. The loss of capacity of one owner may prevent a needed sale or transfer of the property.