What's the Difference Between a Joint Owner and a Beneficiary?

When opening an account or just maintaining your account, knowing the difference between a joint owner and a beneficiary can be confusing. Let’s take a minute to learn a few of the differences and why having one or both can be important.

Beneficiaries are people or entities that the holder of an account designates to receive the assets in the account in the event of the account holder’s death. Beneficiaries do not have access to an account, nor are they provided with any information from that account.

Joint Owners are 2 or more equal owners on the account. Joint owners can be anyone, including but not limited to a spouse, sibling, or friend. Any owner of the account can withdrawal and deposit at any time. All owners have equal rights to any funds in the account they are listed on. Joint owners are not able to be removed from an account once added*.

*Minors becoming 18 may remove a parent with the parents’ signature.

*Deceased persons can be removed with death certificate

Having a beneficiary is important because in the event you pass away, the beneficiary/beneficiaries can gain access to the funds and do not need to go through probate to get access.

Having a joint owner can be important if you are looking to have someone help you financially and they need access to your funds. Or in the event you take an extended trip, and someone back home is paying your bills while you are off enjoying the sun. Otherwise, with no joint owner, no one would be able to access your funds besides you.

If you would like to add a beneficiary or joint owner, stop in or give us a call and we can help!

Ashley Rousseau

Main Headquarters Teller

This blog is not on behalf of Peninsula Federal Credit Union.