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Explaining Responsibility of Joint Account Owner
My son is the co-owner of a savings account. What responsibility will he have if something happens to me? His wife seems to think that he would be responsible for my debts, whether hospital, if I am ever sued, or just about anything. I, on the other hand, think he would not be responsible for anything other than his half of the savings account balance, or at my death the whole account balance. Can you explain this issue to us.
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 A joint account typically allows either co-owner access to the entire deposit balance, regardless of which owner made them. That means there's no "my half/your half" recognition if one of the co-owners is sued, a judgment is issued, and the judgment creditor levies against the account or attaches the funds. All of the funds in the account would be exposed to the legal process.
Your son's exposure would, however, stop there, with the balance in the account. Any of his own property would not be reached by one of your creditors, unless he had otherwise made himself responsible, for example by co-signing a note or providing a guarantee.
Assuming that the account remains intact until a co-owner dies, and assuming that the joint account was established as a joint tenancy, it would not become part of the deceased individual's estate. State law would determine whether the surviving joint owner would be responsible to the estate for debts of the deceased owner.
Published on BankingQuestions.com 6/25/09
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