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An Account with Spouse and Two Friends
I am considering opening a bank account in which I would be the primary signer on it. I would also be adding my spouse and two very close friends of mine to the account to help manage my affairs. From a withdrawal and transfer of funds standpoint, are there any limitations that the others would have? If they transfer larger amounts of money to make purchases of items is this allowable by IRS rules?
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 The IRS doesn't care. This is between your bank, you and your friends. There are two ways to establish this account. It may be joint, with you and anyone else you trust, or it may have some of these people as "convenience signers." Your bank may use another term. This means these people have no ownership rights on your account, but they can be allowed to transact business.
If A has an account and has B as a joint owner, and B is sued and loses, the money in any account owned by B, including this joint account, where only A has deposited money, is at risk. A court, a creditor and even the IRS may go into that account and garnish the funds. A can show proof that all the funds were deposited by him/her, but that won't matter because ownership was shared with B.
There are hazards and this may or may not be the best arrangement for you. As joint owners, each person can add funds, withdraw funds and even close the account. Most banks don't recognize a primary owner, withdrawal limitations or multiple signatures required to conduct transfers.
Published on BankingQuestions.com 2/26/09
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