ABA Family Legal Guide

The Rights of Older Americans

A Right to Control Your Own Affairs

Joint Ownership

I'm concerned about the disadvantages of joint bank accounts. Is there another way that I can give someone access to my bank account without giving that person ownership of my money?

Some states have laws allowing persons to create what is referred to as an agency bank account or convenience account. This works very much like a durable power of attorney. You name an agent on your bank account, who then has the authority to make deposits or withdrawals and manage your account. The authority remains effective if you become incapacitated or disabled, unless you indicate otherwise. The agent has no right of ownership in the money in the account before or after your death, unless you indicate that the agent is to receive the money when you die. This may be a useful tool for you if you do not want to give someone authority over other aspects of your financial affairs through a durable power of attorney. It also may be useful as a supplement to your durable power of attorney, because some banks are reluctant to accept a durable power of attorney and prefer their own forms and procedures. Your banker or lawyer should be able to tell you whether your state's law allows agency bank accounts and how one might benefit you.