From another thread:
What would be a reason for parents and adult kids living on their own to have joint bank and financial accounts? I.e. those where each person has some discretion on the account (as opposed to pay-on-death or beneficiary arrangements that only matter when the actual account owner dies, and are at the sole discretion of the account owner).
My children had their own bank accounts even when they were in high school. I see this as part of the rather long task of helping them turn into adults.
The main reason that I can see to have a joint account is if one person, probably the parent, is likely to be incapacitated. Sometimes when people get very old they lose the ability to look after their own finances, and need help from someone more capable â typically an adult child.
I can see a reason for a child to let the parent view their university account. For example this can allow a parent to see what the child owes, and to pay tuition and fees and potentially other bills when needed.
Iâve never had joint bank accounts with my kids after they turned 17, why would I? I find personal finances to be, well, personal.
We have joint bank accounts with our adult kids as part of our private banking. We donât even look at the accounts the kids are on but by being part of our private banking they get certain perks. In addition to free ATM use at any ATM worldwide they have had access to our private banker who arranged for emergency debit card to be messengered to daughter when hers was compromised. Heâs also had a security deposit immediately wire transferred to a landlord when it was needed to get a lease.
My kids have their own accounts, but they are linked to my private banking account so they could enjoy some perks. Similar to @maya54. D2 still has my platinum AmEx card for just in case (she is still in law school).
Also, if you die, it simplifies $ transfer. This can also be done with a POD/Payable on Death.
When D1 went abroad for 10 months, we connected our accounts so I could manage her $, if needed. She never split hers off. So be it. She manages hers.
For a long while, before easy money transfers like Venmo, this also made it simple to transfer funds.
My kids were in elementary/middle school when they opened their accounts, so I am on them too. Now that older S is on his own, his primary financial accounts are at different institutions and solo. But I suggested to him that he always keep that account, because itâs so easy for me to move $$$ around. I donât venmo and would rather not have to. I also deposit any checks that come to them to our house. Iâve been with our bank forever and the tellers know me and my kids by name.
That seems like an unusual story â lots of banks went out of business (1980s or 2008ish), or got merged into other banks with many branches being closed or combined.
I was on my kidsâ accounts since they were established more than 20 years ago (they were babies). One daughter is fine with it and has left me on her account as a co-owner. Our credit union changed their computer system more than a year ago so her account comes up when I pull up my account. I can look if I want to, but I usually donât.
Other daughter still has her original account but wanted me off. Doesnât make much difference. I can still deposit into her account but Iâd have to add her number to the transaction. If she dies, I doubt she has a POD listed so it would go to her estate, and require probate.
My parents knew all the tellers and bank officers, but the lobby hasnât been open much this year. I donât go in much. In fact, we all still used this credit union when we lived out of state for 5 years and did everything by direct deposit, ATM, and mail. Iâve been a member for 35 years.
When my father died, it was very easy to deal with the credit union as my mother was a joint owner on all accounts except one. When they had a systems change that one didnât cross over correctly, but the CU just worked with us to close it out. We learned that it was very important to have a POD that wasnât âestateâ, so she went down and listed my brother on her accounts. We didnât care who was listed, just that it be one person. She and my brother co-own her house, so it made sense for him to be listed as POD.
I have a joint bank account with my mom that is linked to a brokerage account she inherited from her aunt. It seemed easier to retitle stocks and add my name to eliminate any future probate. The bank account gets the portion of dividends that arenât reinvested. My parents have also added my name to cdâs, checking, and savings accounts so I can help as they get older but that is their money.
We uncoupled the joint account when D was 18. We still have her name on one of our credit cards incase there is an emergency and she needs to pay for something expensive as her card has a low limit.
My father put my name on his accounts when my mom got sicker. Made the estate stuff more straight forward.
If D opens an account at my bank, even if under her name only, she can access all our special banking perks and the wealth management services.
Well my little city is way behind the times in many ways. In this case, I suppose there is some benefit. My H has had an account there since the 1970s. Now they ARE (for the first time that I know of) merging with another small bank next year. But I doubt they will close the Main Street branch.
Not 100% sure, but I could imagine it could help the person (normally the child) with fewer assets to qualify for a mortgage. The mortgage co would probably assume if there are 2 owners, each own 1/2.
I wouldnât want my kid to be a co-owner of my assets; I donât want my assets to be subject to their creditors (car accidents, divorces, medical bills etc).
People make fun of me because I still try to live largely in a cash economy and write checks and donât have a debit card. My kids have inherited my old-school ways so still have accounts they opened at our credit union when they were in elementary school. I am still on those accounts. It helps with things like transferring money, depositing checks their grandmother still sends here, etc. NBD. They also have accounts in banks Iâm not on, and those accounts are associated with their debit cards. Works for us.
Interesting wrinkle with our 529 (Vanguard) which only allows electronic transfers to the ownerâs bank account (payments to a beneficiary have to be done with a check sent by mail). So Iâve stayed listed as a joint owner on the kidsâ bank accounts while they are in college since they pay the tuition bills, apartment lease etc with 529 withdrawals and I donât want the risk of a check going missing or the delay of multiple transfers (also the 1099-Q lists me as the recipient).
Our kids like the perks of the our bank. Our tellers also know us by name. Weâve been banking with them for years and are in a large city. The kids have had accounts there since they were preschoolers.
Weâve easily deposited funds for college into their accounts to pay for their tuitions and expenses. Transactions for our kidsâ travel abroad have been easier.
Each child has a âsplitterâ account where they have an account, tied to our account, but we donât have access to their accounts.
They have other accounts on their own, but their banking is done at the home bank.
@Twoin18 Thatâs exactly the kind of thing Iâm talking about in terms of ease. We also have a Vanguard 529, and having me on some of their accounts has helped things go smoothly.
Adding that the kids won scholarships from our credit union and worked there during the summers. They are brand loyal and, I think, like this connection with their hometown. 
Having one credit card or account that you share with an adult child can be helpful. I have known parents who because they were able to access their adult childâs account were able to solve financial issues when the kid was abroad. My daughter still has one credit card that I pay and she uses it when I want to treat her to something. So for us it makes gifting her a special meal or item easy without me physically being there.
On the other end of the spectrum, when my mother in law was no longer able to do her own bill paying, a joint account was required so my husband could pay her bills and handle her finances for her (without getting full power of attorney).
I am on two of Happykidâs accounts, and sheâs on another one with me that is left over from when we were out of state for two years and she was in charge of dealing with our house for us. My mother was the second person on the home-town bank account that was opened when Happykid was born, and after she passed away, my sister who is local to that bank became the one on that account. Happydadâs mother is on one of his accounts so he can send her money easily. Happykid is on two of my credit cards and one of Happydadâs. So yes the financial connections can look messy to an outsider, but all of these people are responsible and we are set up to take care of each other when someone needs a bit of help.
I think that difficulties are more likely to arise if there are multiple children in need of fairness, or if one (or more) of the parties involved is a bad money manager. Weâve got only one kid, we are down to just one grandma at this point, and everyone is (for the present at least) financially responsible. What works for us wonât work for everyone.
I see little reason for parents and young adult children to have joint accounts, but I was a joint owner on a couple of my motherâs accounts as she aged, and it made the process a lot easier when she died. I had immediate access to the funds for expenses even before the bank accepted my notice as executor, so I did not have to front them and then reimburse myself from the new estate account.by
I forgot. D and I had a joint account at BofA when she was at Dartmouth, so I could easily send her money by stopping by the local branch on the way home from work and popping a check in the ATM, since my regular bank did not have a branch in Hanover.