Joint account.
In plain English
Joint ownership means full, independent access for every name on the account: either person can withdraw everything, legally, at any time. Most joint accounts carry survivorship, so the balance passes directly to the surviving owner outside of probate. The flip side is shared exposure: one owner's garnishment or judgment can reach the account, and FDIC coverage applies per owner (effectively doubling protection on a two-person account).
01Why it matters
Couples default into joint accounts at the "merge finances" moment without anyone explaining that joint means each person can drain it, and that adding someone (an adult child to help with bills, a new partner) is a legal ownership transfer, not a convenience setting.
02The math, step by step
A parent adds an adult child to their checking account for bill-paying help. The child's old credit judgment surfaces and the creditor levies the account, reaching the parent's money. A power of attorney or the bank's authorized-signer option would have given the help without the ownership.
03What this is NOT
An authorized signer can transact but doesn't own the money, doesn't get survivorship, and doesn't expose the account to their creditors.
Plain-English answers from our glossary. Receipts included. Never advice.
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