My parents are considering putting my name on certain bank accounts. Is that wise to do?

Putting your name on checking or savings accounts as a joint account holder or an authorized signer will not obligate you to pay taxes on the money. People get slammed with taxes when their parents put the accounts in the adult child's name only. Many parents do that in anticipation of needing nursing home care in the future, and try to move assets into the kids' names before the five-year lookback term kicks in. If they move the assets into your name, you may be obligated for the taxes. If you are merely an authorized signer, you will not. Also, if you are added to the accounts as a joint owner, you will automatically inherit those funds, and they will not be part of the estate. Don't know if you have sibs, but that may be a consideration. Your parents can add you as an authorized signer, which allows you to write checks and make withdrawals, but does not make you a co-owner of these accounts.

I am a banker. Hope this info helped.

Actually, to me POA is less serious than adding a name to an account, although both are serious considerations. There are no tax consequences when adding your name to parents' accounts. It is not income or a gift. The money is still listed under their SS number. The only major disadvantage will be to your parents. First, you have to be completely trustworthy or you can clear their account. (I'm sure you wouldn't do that.) Second, any account that has your name on it will be considered yours if you are sued or have creditors trying to collect money. Because of these considerations, many people feel a POA is better than adding a name to an account.

My name is on my mother's accounts. It was most peculiar. She and her attorney did not trust me to be POA over all her financial affairs, but she trusted me enough to put my name on her accounts. Go figure! The truth is that she didn't understand what a POA does and her attorney is a bit nutty.

My father refuses to give anyone POA. He's seen what happened when his brother gave his wife POA when he became seriously ill. She abused it. She left him at home struggling to care for himself while she was out socializing with his money. My father will only allow my name in his checking and savings account as authorized to make withdrawals. I'm not co-owner in the accounts.

Then, 2 years ago, I signed his income tax return as "so-and-so in behalf of". I found out that I could not do that. I needed to have POA. I explained to the tax lady my dad's situation and his refusal to give anyone POA. She said that they have their own POA form just only for taxes. On the form, my dad can only just mark the box that only allows me to sign his tax return. Only to sign for that and nothing else. My father agreed to that.

FYI, he's reaching the stage where he is accusing me of stealing his money from his bank accounts. I'm finding myself becoming stressed over this. And making sure I have receipts as back up.

DG, I've wondered if adding someone's name to an account as an authorized signer only would protect the parents' money in a case where the child incurs debt. It seems like it would, since the money would not be seen as the child's money. I had wondered if maybe I was in an accident and got sued, could they go after my mother's money. I am on her accounts only as a person authorized to sign checks.

I gather that your parent's financing is not complicated. By that I mean they do not own CDs, IRAs, or stocks. If they did, you would need to be each parent's durable POA.

You mention that your name is on your mother's account. That sounds like my mother who put my name on all of her accounts and investments as co-owner with right of survivorship. Her money was completely seperate from my step-dad's but they did have a joint account.

Do your parents have a joint account or your dad have his own accounts? If your name is not on them, you will not be able to help him when the time comes unless you have his durable POA. If you don't get his durable POA soon enough, you will end up going to court to file guardianship for him when he becomes incompetent and that is costly, $5,000 and requires two doctors testifying in court that your dad is incompetent.

Also, you state that your name is only on some of the accounts. Well, that answers your question about needing a durable POA for both you mom and dad right there. Without a POA you will not be able to access that money for their care when they need it. Also, without a POA you will not be able to file their taxes in their behalf when they are no longer competent to do so.

You have a lot to think about. I suggest getting durable and medical POA for each parent as soon as you can! I gather you are an only child like myself which simplifies things.

one of two: yes your POA ends at death. The Executor of the Will moves things into an estate account. Then they wait for all bills to be presented. In NY the waiting period is 7 months. Other states have different rules.
Any lawyer will tell you NEVER co-mingle funds. About the safest option is to be added only as an authorized signer and NOT a joint account owner.

Our elder law attorney suggest bank accounts remain in the senior's name (mother & also for MIL's accounts) with my/my husband's name as POA and POD. There are numerous threads on how to sign checks on those accounts using the POA and POD designation. Also, keep in mind if your name is on the account as joint you would be considered party to any related overdraft or lines of credit attached to the account.

Solesurvivor - I think you do want to become DPOA for both your parents. I don't find being DPOA to be something major. Really having a DPOA is just good judgement & planning on the part of all that someone can be able to do things IF need be as one good fall could leave your parents quite incapacitated. Without the POA's - Durable & Medical - you could find yourself unable to do anything for your parents if need be. You simply have no standing. Hospitals, clinics, ER, doc's etc cannot give you any info on your parents due to HIPPA. You have to have a MPOA to get the info that you may critically need. Really speak with you parents about going to an elder law attorney to get the basic paperwork done: DPOA, MPOA, a will or codicil to their old will. If your state allows for a "Guardianship in case of Incapacity" statement to be done, get that one done too. Really even if your folks seem all sensible now, things can change in a heart-beat.

My NH mom has been on hospice now for 18 months, this summer after another TIA, things looked pretty bad so I went to find out exactly where I stood for her banking. I am DPOA; it is 1 checking account & mom is on Medicaid. I live in another state. I pay directly from this account mom's SOC payment to the NH and write checks for whatever personal stuff she needs when I come in to visit.

this is what I was told: account is set up under mom's SS with me as a signature on the account. Account is POD to me upon her death & as such I can elect to keep it open with my SS attached to the account as it is now mine due to POD. I just need to keep it "active" in some way, like a small deposit every 6 months. This account only gets mom's SS & my late dad's federal survivor retirement, so once she dies there will be no longer be any direct deposit of funds so just whatever smallish amount left from her personal needs allowance of $ 60 each month not paid to NH as mom's SOC for Medicaid will be left. This account can become the estate account when probate opens and can change to that if need be.

Now my mom's state (TX) has probate at 4 years, so I could as executrix in theory keep the account open being idle for quite a long time before it became an estate account. Whether or not it will become an estate account will depend on just what path of probate is done. If full probate opened, then yes, it will turn into estate of account and the balance as of her DoD is due to me from her estate whenever that closes. But if we are able to do a muniment of title for her house, then no and I'll just let the account run as is till muniment if finished then close it out and the remainder is mine.

Your state's banking rules and probate laws are going to make a difference as to what your options are. Really you need to be DPOA. Most states have POA as totally private with 2 witnesses and a notary signature & seal to be legal. Some states (like Mississippi) you are supposed to register the document at the courthouse.

oneoftwo, yes everything freezes immediately. SS publishes a daily death list, and banks check it every day and issue a HOLD. The Executors go to the bank with the Will and Death certificate ORIGINAL copy and an EIN number for the "Estate of Mrs. xxxxxxx" and move all her assets into an Estate account. NOTHING is distributed until the estate waiting period is up and all bills are paid. Every state has a different waiting period. Here in NY it is 7 months.

OneOfTwo, I am in similar situation, but I'm 1of5, and my parents (in 90's) changed all their documents (Dpoa, Executor, Trust, bank POA and bank co-owner) in 2014. 3 of the 4 sibs no longer speak to parents or me, but you can be sure they'll be there with their tongues drooling after both parents go, its so sad that they all moved so far out of state, and they never come to visit. Its a fractured family to be sure. I actually would not want theur "help" when the time comes, they have sticky fingers every time they have managed to visit, they insist in staying in nice hotel and they're sure to mention thier costs to Dad or Mom, who (used to) whip open the wallets and give them hundreds or thousands of dollars reimbursement. Meanwhile, there I am, 3-4-5-7 times a week doing everything. Mom finally saw the inequity (see my other posts). She alone called up the lawyer and arranged to change it all (you should've seen the lawyer's face). The current state of affairs of my family probably won't ever improve, and that is just fine with me. My folks need to preserve their funds, and all these sib's are Adults after all. My advices to you, keep meticulous records, everything needs ti be written down that you do on behalf on your mom. Use your cell phone always (mine has printable records for 3 months). Make photocopy of everything and keeo copy, scan & store in PC. The rrason for doing all this is to protect yourself against your sibling claiming you messed up something, or worse, you get sued by APS or M.A. for abusing funds. I hop you'll post some updates. Best wishes.