Bank Accounts: An Easy Step Is Joint WROS

One of the easiest steps to take in protecting your family's accessibility to funds in a crisis is an easily overlooked one. If you have an aging family member or one dealing with a health crisis that could become critical, now is the time to change their main checking account to a joint account With Rights Of Survivorship.

This simple step ensures that if your aging parent becomes disabled, incapacitated or dies, that the joint owner will still be able to access the funds and pay the bills or make arrangements as the family member wishes. Most married couples already have this type of an account. By adding your, or another caregivers name to the account, immediate needs can be addressed. This should be a responsible person that is in the vicinity of the individual with the potential need who completely understands it will not be a personal checking account for them! It does not have to be the person who will be the Durable Power of Attorney or the executor. You may in fact choose to divide this between family members as a way of sharing the care of your loved one.

A joint account does not take the place of a Durable Power of Attorney or the Executor of a will. This just makes those crisis-driven, moment's notice expenses less painful and less complicated. If your loved one is in the hospital, the mortgage can still get paid as well as the health insurance if they are due the next day. This is generally the account that is funded by pensions, dividends, and other retirement incomes. Their "operating" account, if you will. The flow of money can continue while the paperwork is processed to set the Power of Attorney up on all the investment accounts. No one will be in danger of missing a payment on a long term care policy. Having a Durable Power of Attorney or a Will is only one step in the process of taking over someone's financial management. The paperwork can take some time to get in place.