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What’s the Difference Between a Joint Owner, Authorized Signer, Power of Attorney & Beneficiary?

What’s the Difference Between a Joint Owner, Authorized Signer, Power of Attorney & Beneficiary?

 

This time, we want to spotlight the difference between a joint owner, authorized signer, power of attorney, and beneficiary. If you have questions, please contact a PECU Financial Services Representative by calling 800-772-1955 or e-mailing member@pecutx.org.

 

JOINT OWNER

  • The primary owner of the account (member) can give a person ownership of the funds in an account by adding them as a joint owner to their account.
  • Has full access to all funds in the account in which they are a joint owner.
  • Can deposit their own funds into the account.
  • All of PECU’s joint accounts are “joint with the right of survivorship” which means upon the death of one of the owners, the funds belong to the surviving owner.

 

AUTHORIZED SIGNER (CONVENIENCE SIGNER)

  • The primary owner of the account (member) can give a person authorization to access the funds in an account by adding them as a signer to their account.
  • Has full access to all funds in the account in which they are a signer, but they do not own the funds. They are acting on behalf of the member.
  • Cannot deposit their own funds into the account on which they are a signer.
  • All access to the funds stops on the date of the primary owner’s death.

 

POWER OF ATTORNEY

  • The primary owner of the account (member) can give a person authorization to access the funds in an account by adding them as a power of attorney.
  • Has full access to all funds in the account to which they are power of attorney, but they do not own the funds. They are acting on behalf of the member
  • Cannot deposit their own funds into the account on which they are power of attorney.
  • All access to the funds stops on the date of the primary owner’s death.

 

BENEFICIARY

The owners of an account can name a payable-on-death (POD) beneficiary or beneficiaries. Upon the death of the last account owner, ownership of the account shall be divided equally among all surviving beneficiaries that have been added.

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