Can My Mother Withdraw Money From My Account?

Understanding who can access bank accounts and under what circumstances is a common concern. A parent’s ability to withdraw money from another’s account depends entirely on legal arrangements. Access is not automatic and requires specific authorization or an established legal relationship. This article explores how access can be granted and managed.

Common Ways Others Gain Account Access

Access to another’s account is granted through formal arrangements. A common method is a joint account, where two or more individuals are named as account holders. Each joint account holder has equal rights to deposit, withdraw, and manage funds. Any joint owner can access the entire balance without needing permission from other account holders.

Access can also be granted through a Power of Attorney (POA). A POA is a legal document where the principal grants an agent authority to act on their behalf in financial matters. This authority can be broad, covering all financial affairs including bank accounts, or limited to specific transactions. To access bank accounts, the POA must explicitly grant banking powers, and the agent presents the document to the financial institution for verification.

Account holders can also grant access by designating an authorized signer or user. This allows the authorized individual to perform transactions like withdrawals, writing checks, or using a debit card. Unlike a joint owner, an authorized signer does not own the funds and cannot close the account or add other signers. This access is simpler to establish than a POA and can be revoked by the primary account holder.

Controlling Account Access

Account holders can manage or restrict account access. To remove a co-owner from a joint account, consent from all account holders (or the one being removed) and a visit to the financial institution are typically required. Some banks require all joint owners to sign a form or may require closing the account and opening a new individual one. Contact the financial institution for their specific procedures.

To revoke a Power of Attorney, the principal must issue a formal revocation document. This document must explicitly state the intent to cancel the POA and be signed and notarized. After revocation, notify all financial institutions and relevant parties where the POA was presented to ensure they are aware the agent’s authority has been terminated.

Removing an authorized signer or user from an account is a straightforward process. The primary account holder can do this by contacting their bank directly (in person, by phone, or online). The financial institution will require identity verification and then process the request. Once removed, the individual will no longer have transaction privileges.

Protecting personal information controls against unauthorized access. This includes safeguarding online banking credentials, debit card PINs, and bank statements. Regularly updating passwords, using strong combinations, and avoiding sharing sensitive account details prevents informal access. Be cautious about phishing attempts or scams that try to trick individuals into revealing banking information.

Regularly monitoring account activity helps maintain control over funds. Reviewing bank statements and online transaction histories frequently identifies suspicious or unauthorized withdrawals. Many financial institutions offer alerts for unusual activity or large transactions. Promptly reporting unauthorized transactions to the bank can help in investigating and recovering lost funds.

Understanding Account Ownership Structures

Bank accounts have various ownership structures, defining who legally owns and controls funds. An individual account is owned solely by one person, with exclusive control over transactions. No other person has an inherent legal right to access funds unless explicitly granted through legal arrangements like a Power of Attorney. The individual account holder is the sole legal owner of the assets.

A joint account is owned by two or more individuals. Each owner has full and equal rights to the entire balance. Any joint owner can act independently to access or manage funds. Many joint accounts include a “right of survivorship,” where ownership automatically transfers to surviving account holders upon death, bypassing probate.

Custodial accounts (UGMA or UTMA) have a unique ownership structure. Funds are legally owned by the minor beneficiary but managed by a designated custodian until the minor reaches the age of majority. The custodian has a fiduciary duty to manage assets for the minor’s benefit, with legal ownership resting with the minor. This structure ensures funds are available for the minor’s use upon adulthood.

Trust accounts are another ownership structure where funds are held and managed by a trustee for one or more beneficiaries. The trust agreement, a binding legal document, dictates how funds are managed, distributed, and accessed. The trustee, not the grantor or beneficiaries, holds legal title to the assets. Access to funds is strictly governed by the trust document’s terms, ensuring distributions align with the grantor’s wishes and specified purposes.