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Should I use a POA or joint bank account to help a friend in prison manage his money?

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jennywo

Junior Member
What is the name of your state (only U.S. law)? California

I have a friend in prison. He had a joint bank account with his father who recently passed away. I'd like to help him manage his bank accounts and money for him. Is it better to get a power of attorney or have a joint account with him? I need to know for taxes, liability or any other risks.

thank you,
Jenny
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? California

I have a friend in prison. He had a joint bank account with his father who recently passed away. I'd like to help him manage his bank accounts and money for him. Is it better to get a power of attorney or have a joint account with him? I need to know for taxes, liability or any other risks.

thank you,
Jenny
It would be monumentally stupid to set up a joint account with this "friend". If you want to help him by dealing with his financial transactions, then go for the POA. Before doing that, however, please think long and hard about why he is in prison. Do you really want to get involved?
 

FlyingRon

Senior Member
A joint account would be foolish for him (and possibly for you). It essentially gives you rights to the money within (and also responsibility for any taxes, etc...). A POA would be the best bet, but as Zig notes, that you need to be very careful in what you do on your criminal friend's behalf.
 

jennywo

Junior Member
Thank you!

hank you all for your advice! I did talk to an estate lawyer last night and she definitely suggested a POA over a joint account which could have tax and other implications for me and for my friend. I think I will go that route.

Thank you for your input - it's all very helpful!
Jenny:)
 

Zigner

Senior Member, Non-Attorney
I'm going to keep that confidential but it's not for anything like robbery or theft. Except for the mistakes he's made, he's actually a very good and honest person. I trust him.
I hope it all goes well for you...
I have a feeling we'll be seeing you back here later though.
 

Zigner

Senior Member, Non-Attorney
Thank you but I don't think anyone needs that information for questions like this. I do appreciate your help though!
<SMH>
Again, I'm sure you'll be back soon, and I suspect your questions will be of a more...personal nature.
 

Dandy Don

Senior Member
If you think there is a danger of him becoming violent or abusive if he should disagree with any aspect of something you did while handling his money, it may be better for you to not get involved. There are professional companies who serve as payees (for a percentage fee) for prisoners and disabled people, among others.

Please be sure to keep receipts for any and all purchases or withdrawals made and keep all monthly bank statements.
 

quincy

Senior Member
If you think there is a danger of him becoming violent or abusive if he should disagree with any aspect of something you did while handling his money, it may be better for you to not get involved. There are professional companies who serve as payees (for a percentage fee) for prisoners and disabled people, among others.

Please be sure to keep receipts for any and all purchases or withdrawals made and keep all monthly bank statements.
Dandy Don, you might want to look at posting dates. This one is from August of last year.
 

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