Free Investment Advice

Planning for the future also means ensuring that, in the event that anything happens to you or your loved one, access to bank accounts and other assets are available.

Having two signatures on your savings account can save you a great deal of time and stress in case you or your spouse becomes ill or dies.

Here are two scenarios that solidify how important it is to have more than one signature on any bank account in general and a savings account in particular.

Let’s assume your spouse has a savings account in his name. He makes all of the deposits and withdrawals to said account. One day, he becomes ill and is unable to access the account. You cannot make any withdrawals from that account. Why? It is solely under his name.

Let’s again assume that you are caring for your aging parents. If they die, all of the assets become part of their estate. Thus, you will not be able to access any bank accounts to pay for the funeral expenses. This is especially true if there is no will.

Here are some immediate steps you can take:

1. Ensure that both parents’ names are on all bank accounts.
2. Have a document drawn up that gives you durable power of attorney for your parents.
3. Add your name to any of the bank accounts your parents may have.
4. Initiate a healthcare proxy for your parents in case they become incapacitated.

These are safety measures that will ensure their assets are protected in case they become ill or die.

One other point should be made. Oftentimes children of aging parents cannot afford to take care of them and may put them in nursing homes. If your parents have bank accounts, the nursing home will take that money as payment for providing shelter and healthcare services to your parents.

In fact, experts suggest that once parents are in a nursing home, there is no way to protect their existing assets. Thus, all of their income would be used to pay for the nursing home facility before Medicaid takes over.

It all begins with protecting the savings account and other money market accounts in your name or your parents’ name now. Sometimes we put off financial concerns because the subject is too difficult to discuss.

Secure your savings account by discussing this with your children, a lawyer, or your accountant so that you will not have to face the alternatives at a time when you will be most vulnerable.