The Benefits of Sharing a Bank Account With Your Parents

Most banks will allow you to become a joint owner on a parent’s existing bank account. Dreamstime/TCA

By Ella Vincent From Kiplinger’s Personal Finance

Question: My parents are starting to need more help managing their finances, and I was wondering if I should open a joint bank account with them? What are the pros and cons, and what steps would I need to take?

Answer: According to the National Institute on Aging, 6 million Americans aged 65 and older are living with Alzheimer’s disease. If dementia or other health issues prevent an elderly parent from paying their bills or monitoring their financial accounts, opening a joint bank account could help you protect them from fraud and manage their money.

Most banks will allow you to become a joint owner on a parent’s existing bank account. Otherwise, you may choose to open a new account. With brick-and-mortar banks, you’ll usually need to go to a branch and fill out an application. Bring identification, including a government-issued ID that shows your full name and your birth date, as well as proof of address, such as a utility bill or credit card statement. If your parent is physically or mentally incapacitated and unable to apply in person, your bank may allow you to apply online, according to Greg McBride, chief financial analyst at Bankrate.

Advantages and Disadvantages

With a joint account, you get an extra layer of deposit insurance against bank failure. The Federal Deposit Insurance Corp. (FDIC) insures joint accounts for up to $500,000, compared with $250,000 for a single depositor.

A joint account enables you to monitor statements for any unfamiliar purchases or charges, which can protect your parent from fraud. Although you can’t limit your parent’s access to the account, you can ask your bank to alert you if your parent does something that raises concerns, such as attempting to make several large withdrawals, says Cameron Huddleston, author of Mom and Dad, We Need to Talk: How to Have Essential Conversations with Your Parents About Their Finances.

If your parent incurs overdraft fees, you’re equally responsible for paying them and replenish the account, says Cheri Stein, partner and senior trust officer at Plante Moran Wealth Management. And if you’re thinking about adding someone else to the joint account—one of your siblings, for example—it’s important to understand that any joint account owner can withdraw funds from the account at any time, without your permission. Make sure that you trust anyone who is named as a joint owner of the account.

A joint account can simplify estate planning. Most joint accounts have rights of survivorship, which means account ownership automatically transfers to the joint owner (or owners) after the other owner’s death, outside of probate (the legal process to review a will and distribute assets).

Note that a joint account designation supersedes language in your parent’s will. If your parent dies, the funds go directly to the joint owner, even if the will states otherwise.

An Alternative Option

A joint bank account lets you access and manage funds while your parent is alive and will help you avoid probate after their death. However, if your parent is reluctant to add you as an account owner, ask them to give you power of attorney for finances. This will grant you the authority to handle your parent’s finances, such as paying bills, if they become incapacitated.

Your parent’s bank may have its own power of attorney form, so make sure you complete the paperwork the institution requires. Ask the bank to keep a copy on file.

©2025 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC.

The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.