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What are Co-signer's Liabilities?
My mother would like to add me as a co-signer on her checking account. I'm concerned that I would become responsible for her debt or be adversely impacted on my personal credit if she were to default on any loans. We currently live in different states. She is in Arizona and the checking account is located there. Is there any way that her creditors could come after me and my personal accounts if she were to default on any loans?
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 A co-signer is a term usually reserved for loans. A deposit account is not supposed to be a loan, but certainly they can go into a negative balance, called an overdraft, and co-owners of the account do have liability. If your mother's deposit account went into the overdraft and you were a co-owner, you would have liability, your personal assets could be called on for repayment and your credit could be impacted if the account was not properly handled.
You could ask to be a convenience signer on your mother's account. This means you would have the capability of writing checks from the account, making deposits, and reviewing the account, but as you would not be an owner, you wouldn't have liability and FDIC insurance coverage wouldn't be increased as a result of the additional owner on the joint account. It may be that you can accomplish what you want as a convenience signer, without the liability. Ask her bank if they would allow this, and what you would have to do to be added.
Published on BankingQuestions.com 2/26/09
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