Most people know what happens to a bank account after its owner dies, or at least know that wills, beneficiaries, and estate rules come into play. A much less comfortable question is what happens if you are still alive but suddenly cannot manage the account yourself because of a stroke, serious accident, dementia, or another incapacitating condition. Your checking and savings accounts do not simply transfer to your children, and being married or closely related does not necessarily give someone authority over an individually owned account. Imagine a homeowner has a stroke on the 20th of the month: the mortgage is due on the first, an insurance premium is coming out the following week, and an adult child knows there is enough money in Mom’s checking account to cover everything, but has no legal authority to use it. So, what happens to a bank account after you’ve become incapacitated? Here’s what you need to know.
