Joint Account Law and Legal Definition

A joint account means a bank or brokerage account shared by two or more individuals. Mostly, joint accounts are created between close relatives or business partners. Each party to the joint account has a present right to all the funds in the account. Any member of the joint account can deposit and withdraw from it. In the case where one of the joint owners passes away, the survivor will become the owner of the account. The deceased party’s heirs will have no right in a joint account. Any individual who is a member of the joint account can withdraw from the account and deposit to it. Usually, joint accounts are shared between close relatives or business partners. The operation of a joint account can be restricted by imposing the condition that either individual or all signatures are required for drawing checks under such account. In the case of overdrafts or bounced checks, all members to the joint account are liable, unless one party didn't sign and there was a two-signature requirement.