Caregiver Banking: This is when a person shares limited online access to their bank accounts with a trusted individual as a caregiver. When access is shared, the caregiver can perform limited transactions, like paying a bill with established payees, or transferring funds between the account owner’s chosen Huntington accounts, and will only see information relevant to those accounts. Confidential information, like the account owner’s username and password, is not shared with the caregiver. Caregiver Banking is not a joint account and does not incorporate power of attorney.
Joint Account: A joint account is a traditional checking or savings account, but account ownership is shared between two or more individuals—meaning each account owner has shared, equal access to the account and its funds. Any person named on the account has the ability to withdraw cash, transfer funds in and out of the account, pay bills, and make purchases. All account owners are also equally responsible for unpaid debts tied to the account, even if only one of the account owners created the debt.
Power of Attorney: A power of attorney (POA) is a legal document that authorizes a person to act as an agent on another person's behalf, and is often used when a person is unable to make decisions for themselves due to an illness or disability. There are different types of powers of attorney, in which a named person may be able to make decisions about the account owner's property, finances, or medical care.
Representative Payee Bank Account: This type of account receives and holds funds for a beneficiary of the Social Security Administration (SSA). The representative payee can either be a person or organization, and they use the account funds on the beneficiary’s behalf. The beneficiary does not have independent access to the funds.
Caregiver Banking is different from a joint account, power of attorney, or representative payee account because sole ownership of the account and the account funds remain with the account owner. It’s a solution for individuals who are still largely independent, but would benefit from collaborating with someone who's helping manage their finances. Caregivers can receive limited access to the account, but they have no legal claim or responsibility over the account and its funds. That's why it's important to discuss the level of intervention or guidance your loved one may need with their finances.