When You Should (or Should Not) Add Someone as a Co-owner vs. Signer on a Bank Account

In Florida estate planning, families often ask whether they should add someone to their bank account—and if so, should that person be a co-owner or just a signer? This seemingly simple decision can have significant legal and financial consequences.

Let’s break down what each role means and when one might be preferred over the other.

What Is a Co-owner on a Bank Account?

Adding someone as a co-owner (joint account holder) gives them full ownership rights to the account—both during your life and after your death.

✅ Pros:

• They can help manage finances or pay bills.
• Avoids probate: the account typically passes automatically to the surviving owner.

⚠️ Cons:

• The co-owner legally owns the funds—even if they didn’t contribute a penny.
• Vulnerable to the co-owner’s creditors, lawsuits, or divorce proceedings.
• May unintentionally disinherit other heirs if not coordinated with your estate plan.

What Is a Signer or Authorized User?

A signer is someone authorized to use the account to assist you but has no ownership rights. This is often called a “convenience account” or “agency arrangement.”

✅ Pros:

• Maintains your ownership and control.
• Limits exposure to the signer’s financial issues.
• Helps reduce risk of financial elder abuse.

⚠️ Cons:

• The account will still go through probate unless it has a payable-on-death (POD) designation.
• The signer may not be authorized to act after your incapacity (unless combined with a durable power of attorney).

Best Practices for Florida Residents

• Don’t rush to add a child or relative as a joint owner just for convenience.
• If your goal is simplicity or bill paying, consider:
  
  • A signer arrangement,
  • A Durable Power of Attorney, or
  • A revocable living trust.
• For estate planning purposes, be aware that adding a co-owner could be treated as a taxable gift if they’re not contributing equally to the funds.
• Under the new tax bill passed in 2025, the federal gift tax exemption is higher—but improper titling can still create unintended tax and probate consequences.

Final Thoughts

Adding a co-owner or signer can be helpful—but if done incorrectly, it can undo years of thoughtful estate planning. If you’re unsure, it’s best to consult with a Florida estate planning attorney to evaluate your goals and risks.