Opening a joint bank account doesn't just benefit you today - it helps you and your spouse plan for the future. Parents with adult children, business partners and unmarried couples also use joint accounts to pay bills, manage expenses and pass along inheritances. Married couples in particular tend to own accounts as joint tenants, which gives the surviving spouse the right of ownership of the entire account if one spouse passes away.

In Florida, married couples also have the option of holding assets as tenants by the entirety, which protects assets from creditors of either spouse. Under Florida law, jointly owned assets are assumed to be held in entirety.

What Are the Rules for Joint Accounts?

When you open a joint account with another person, whether that be a regular checking account, a savings account, or another financial account, you agree to the following rules:

• Both individuals own the money equally. One person can't claim ownership over part or the entirety of the savings account.
• You and your spouse get separate checkbooks and debit cards and can withdraw money at any time. Even if they didn't deposit the money, your spouse can legally spend it however they want.
• Likewise, both individuals can deposit money at any time.
• When you die, everything in the joint account goes directly to your spouse.
• Your spouse can transfer money from the joint account to a separate account

Since both individuals have control over the money, it's important to open an account with someone that you trust. Spouses don't have to automatically open jointly held accounts—that is a personal decision that you and your spouse must make together.

Are Joint Accounts Part of Estate Planning?

The biggest benefit of opening a joint bank account held in joint tenancy is that the assets go directly to your spouse after your death. Generally, this reduces the amount of time that your estate spends in probate, allowing your spouse quick access to the funds instead of having them tied up in court proceedings. This is especially important if they need the money for medical, funeral or life expenses.

What Is Tenancy by the Entirety?

Tenancy by the entirety is a form of joint tenancy only available to married couples that own a piece of property together. Like in joint tenancy, where two people jointly own a piece of property - spouses who own property by the entirety each own an undivided interest in the property, and they both have full rights of possession and enjoyment. They also cannot transfer the interest without the consent of both owners.

Here's why tenancy by the entirety is important:

When you die, the surviving owner of a jointly held asset receives not just the funds, but also any outstanding debts. If you're not married, creditors can seize these assets to pay debts that you left behind. However, if you're married, tenants by the entireties ownership protects your surviving spouse from creditors.

You'll need to apply for a tenants by the entireties account when you get married. If you don't, your spouse might lose their privilege. Many banks offer specialized tenants by the entireties account. Ask your bank about creating evidence that proves your intent if they don't specifically offer one.

Need help? talk to us.

Reach out to Clear Estate to start planning your estate without the hefty attorney fees. We offer tiered packages so you can find the services that meet your needs. Our services include professional advice, will preparation, an estate inventory and access to a platform where you can review and update your estate plans at any time. We also have estate settlement services for beneficiaries, will executors and individuals with power of attorney. Talk to us today for a free chat about our services.