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What are the Pros and Cons of joint bank accounts?

There are advantages and disadvantages to having joint bank accounts.

Nina Drew avatar
Written by Nina Drew
Updated over 2 years ago

There are advantages and disadvantages to having joint bank accounts.

Advantages of joint bank accounts:

  • Allows for rights of survivorship (the remaining account holder retains ownership in the event of a death)

  • Permits money to pass outside a person’s estate to the joint account holder, avoiding the need for probate

  • Does not become part of the deceased’s estate

  • Permits adult children or a Power of Attorney to assist elderly family members with their finances

Disadvantages of joint bank accounts:

  • In the case of an adult child on an elderly parent’s account, it is presumed that they are acting under a POA and the funds should become part of the estate

  • Lack of privacy

  • Shared liability in the case of debts

  • Breakdown in a relationship could lead to issues managing the funds.

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