When it comes to managing a loved one’s financial affairs, the question of whether a joint bank account is right for you comes down to whether you’re comfortable with having your parent handle your account. Let’s take a closer look at the pros and cons of a joint account.
One of the biggest concerns for most people is how they’ll handle their financial accounts if they’re under the care of a professional or some other caretaker. If this is the case, a joint account might not be right for you. In this case, you should consider putting all of your own money in an individual account.
Although maintaining your client’s safety and keeping up with his or her account is important, you can’t expect your partner to pay as much attention to details as you. It’s not realistic to expect your spouse to find all of the charges that have been made to your client’s account and file a dispute right away. In addition, if the account gets taken care of and the money is returned promptly, you may want to leave your account alone.
On the other hand, the account lets your elderly parents pay bills on his or her own terms. It lets him or her manage his or her own money. If a sudden illness or accident takes your parent out of commission for an extended period of time, a joint account may be the only way he or she will get the money he or she needs to survive. This may be a great advantage if your parent has financial problems that make handling cash difficult.
Not everyone agrees that a joint account is right for you. Many people who are against joint accounts suggest that if there are children involved, it’s best to keep their money separate. Other people feel that an account between two people is a lesser form of trust, and one individual is better able to care for the other.
Of course, people’s views about financial situations vary greatly. If your parents share a joint account, it’s probably a good idea to explore the issue carefully.
Don’t rush into making a decision about whether or not to put your parents on a joint account. Take some time to think about whether it’s something you really want to do. Remember, your parents are your parents for life, so it’s a matter of taking a risk and finding out whether or not the benefits outweigh the risks.
If you’re considering putting your parents on a joint account, there are several factors that you should consider. The first thing to consider is how much control your parents have over the account. Once you’ve decided how much freedom you want your parents to have, then you can focus on the assets in the account that are part of your parents’ work history.
For instance, are you worried about your parents not paying enough attention to their tax situation? If you’re concerned about how you’ll handle your own taxes, and you also care about what your parents’ tax situation will be when they’re older, you may want to consider putting them on a joint account. Once you have these two things in mind, you can start working on the actual arrangement.
A mutual agreement can sometimes be a good option. You and your parents should both sign a contract that specifies the types of assets that are part of the account and the types of assets that aren’t. You should also agree on what types of loans and payments will be made.
While your parents can discuss their account with you, you need to set aside appropriate criteria. These criteria should include specific fees that are applicable to the account, such as interest and taxes. However, you don’t want to tell your parents exactly what you expect them to do, just that they’re agreeing to abide by the agreement.
Some couples prefer to have a joint account, but others prefer to keep it separate. If you and your parents can agree on these issues, they may both be happy with the choice.