
Having a Power of Attorney (POA) can be a huge relief for family members or loved ones who need help managing someone's financial affairs. A POA can indeed withdraw money from a joint bank account, but only under certain circumstances.
The POA's authority is typically limited to the specific powers granted by the principal, such as managing finances, paying bills, or handling financial transactions. This means the POA can access and withdraw funds from a joint bank account, but not without the other account holder's consent.
In some cases, the POA may need to obtain a court order or seek permission from the other account holder before withdrawing money. This is especially true if the other account holder is a minor or has a disability, or if the joint account has restrictions or conditions attached to it.
The POA's ability to withdraw money from a joint bank account ultimately depends on the terms of the account and the specific powers granted to them by the principal.
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Joint Accounts and POA

A joint account is a bank account held by two or more people who share ownership of the funds in the account. This means that each account holder has equal access to the account and responsibility for all transactions made through it.
In many cases, joint accounts include the right of survivorship, which means that if one account holder dies, the surviving account holder(s) become(s) the owner(s) of the account.
Joint account holders are treated as owners, which can give a co-owner's creditors the ability to garnish the contents of the account, even if 100% of the assets in the account were deposited by you and used for your benefit.
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What Is a Joint Account?
A joint account is a bank account held by two or more people who share ownership of the funds in the account. This means that all account holders have equal access to the money and can make transactions, deposits, and withdrawals as needed.
Having multiple account holders can be convenient for shared expenses, such as rent or utilities, and can also provide a backup in case one person is unable to manage the account.
Joint account holders typically share equal responsibility for managing the account, including paying bills, keeping track of transactions, and balancing the account.
What is a Joint Deposit Account?
A Joint Deposit Account is a bank account shared by two or more people with equal access and responsibility for all transactions.
You and the other account holder(s) have the right to withdraw or deal with the funds in the account, regardless of who put the money in.
Unless you specify otherwise, the other account holder(s) can make withdrawals or other transactions without your consent.
In most cases, the funds in the account may be subject to creditors' rights or other claims that might exist against the other account holder(s).
Joint accounts often include the right of survivorship, meaning that if one account holder dies, the surviving account holder(s) become the owner(s) of the account.
Scotiabank's Deposit Account Agreement outlines the terms and conditions for joint accounts, which can be found in the Day-to-Day Banking Companion Booklet.
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POA and Joint Accounts
A joint bank account and a power of attorney (POA) are two different financial tools that can be used to manage someone's finances.
Joint accounts give the co-owner far more control over the money than a POA does. In fact, a joint account holder is essentially a joint owner, with the authority to use the entire account balance for any reason.
However, a POA creates a fiduciary relationship, where the agent is legally obligated to act in the principal's best interests, minimizing the risk of financial mismanagement.
If you have a joint account, your co-owner's creditors can garnish the contents of the account, even if 100% of the assets were deposited by you.
A POA, on the other hand, allows the agent to manage the principal's finances without exposing every transaction, preserving privacy and reducing potential conflicts.
A joint bank account automatically gives both parties equal access and control over the funds, which can lead to misuse or disagreements.
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However, a POA can be tailored to specific needs, offering flexibility and protection that a joint bank account simply can't match.
In a joint account, both parties are equally liable for any debts or overdrafts, which can lead to financial messes if one party mismanages the account.
With a POA, the agent is legally obligated to act in the principal's best interests, minimizing the risk of financial mismanagement.
If you have a joint account, removing someone from the account can be challenging and might require mutual consent, making it harder to protect oneself from potential exploitation.
However, a POA comes with clear legal responsibilities and protections, allowing the principal to revoke the agent's authority at any time if they suspect abuse.
POA and Banking
A joint bank account can be a convenient way to manage finances with a partner or family member, but it's essential to understand the implications of adding someone to the account. Joint account holders are essentially co-owners, giving them the authority to use the entire account balance for any reason.
In contrast, a person holding a power of attorney has access to the grantor's bank account, but they are legally required to use those funds for the benefit of the grantor. This gives the grantor much more assurance that their money will be used for their benefit, even after they are no longer able to manage their finances.
Banks often suggest adding a joint owner to an account to make it easier to access funds, but this can have unintended consequences, such as exposing the account to the joint owner's creditors.
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Joint Account Transfers by POA Agent
Joint account transfers by a POA agent can be a complex issue, and it's essential to understand the rules surrounding them.
A joint account is a bank account shared by two or more people, where all account holders have equal access and responsibility for transactions made through the account.
In the case of Russ v. Russ, the Wisconsin Supreme Court held that a joint checking account established before a POA is executed creates a presumption of donative intent.
This means that if one joint account holder creates the account, it's presumed they intended to give the other account holders ownership rights.
However, if the POA agent uses funds from the joint account for their own expenses, it creates a presumption of fraud unless the POA explicitly authorizes self-dealing.
The court in Russ v. Russ also held that when two conflicting presumptions coincide, the court should decide the case based on the facts and credibility of witnesses.
Joint account holders should be aware that in most cases, the other account holder(s) can make withdrawals or transactions without their consent.
This can put the account holders at risk of creditors' rights or other claims against the other account holder(s).
It's essential to understand the terms and conditions of your joint account, including the right of survivorship, which means the surviving account holder(s) become the owner(s) of the account if one account holder dies.
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Power of Attorney
A Power of Attorney (POA) is a legal document that allows one person to grant another person the authority to manage their financial affairs. This arrangement can be tailored to specific needs, offering flexibility and protection that a joint bank account simply can’t match.
With a POA, the principal retains control over their finances and can delineate the exact powers granted to the agent. This can include managing investments, paying bills, or handling real estate transactions. The POA can be as broad or as limited as necessary, ensuring the principal’s needs and preferences are respected.
Creating a joint account or adding a loved one’s name to an account you already own essentially makes them a joint owner. Each person on the account has the legal authority to use the entire account balance for any reason. In contrast, a person holding a power of attorney is a “fiduciary” of the grantor, meaning they must always act in the grantor’s best interest.
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A joint bank account automatically gives both parties equal access and control over the funds, which can lead to misuse or disagreements. If one party mismanages the account, the other is on the hook for the resulting financial mess. A POA, however, creates a fiduciary relationship where the agent is legally obligated to act in the principal’s best interests, minimizing the risk of financial mismanagement.
Financial abuse can be a significant concern, particularly for the elderly or vulnerable. With a POA, the principal can revoke the agent’s authority at any time if they suspect abuse. Removing someone from a joint bank account, however, can be challenging and might require mutual consent, making it harder to protect oneself from potential exploitation.
Scotiabank requires one piece of original, valid and current government photo issued identification or two original, valid and current documents from independent and reliable sources and specimen signature for the attorney, as well as an original or original notarized copy of an existing Power of Attorney.
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Joint Accounts in Estate Planning
Joint accounts can give your loved one more control over your money than a power of attorney. This can be beneficial in some situations, but also poses risks, such as creditors being able to garnish the account's contents.
A joint account essentially makes the co-owner a joint owner of the account, giving them the legal authority to use the entire account balance for any reason. This can be a problem if your co-owner has debts, including alimony or child support.
A person holding a power of attorney, on the other hand, is a "fiduciary" of the grantor, meaning they must act in the grantor's best interest. This gives you more assurance that your money will be used for your benefit.
Joint accounts can be used in an estate plan to automatically transfer ownership and control of the account to the co-owner upon your death. This means the funds will be available to your family immediately after your death, and can be used to support them during the estate administration process.
A joint account with survivorship rights can pass outside of the Connecticut probate process, making it a convenient option for estate planning.
Consider reading: Joint Account after Death
Frequently Asked Questions
Can you still withdraw money from a joint account if one person dies?
Yes, you can still withdraw money from a joint account after one person dies, as the remaining owners retain access to the funds. However, it's essential to review the account's terms and procedures to understand any specific requirements or limitations
Sources
- https://www.lawjur.com/power-of-attorney-if-joint-account/
- https://attorney.elderlawanswers.com/transfers-from-joint-account-by-poa-agent-not-necessarily-self-dealing-6376
- https://jmillerlawfirmpllc.com/why-a-power-of-attorney-is-a-better-choice-than-a-joint-bank-account-for-non-spouses/
- https://www.rbcroyalbank.com/retirement/getting-close/power-of-attorney-joint-accounts.html
- https://www.scotiabank.com/ca/en/about/contact-us/power-of-attorney-joint-deposit-account-legal.html
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