A joint or joint account originates when there are two or more holders that can operate with it with the permission of the rest.
The joint name derives from the need to have the agreement of all holders to carry out operations, hence they are qualified as joint or joint accounts. They are usually used when there are cases of common interests, such as:
- In a company where there are no proxies that can decide freely and independently.
- When inheritance cases occur in which there are several heirs.
- Or in those circumstances in which the law marks that the approval of all those registered is necessary.
Exception and requirements
In some cases, financial institutions also allow any holder to operate on their own and carry out transactions without the need for others to sign. They understand that these accounts are made up of people who trust each other. In which case, the account must be named with the names of all the holders and the conjunction “o” instead of “y”. So that it indicates that any person registered in the account has powers to operate without the need to have permission from the rest, in which case they are called indistinct or solidarity accounts.
In a joint account as well as in the indistinct ones, the authorized figure can also be given. From this figure one or more people are given the power to carry out operations without damaging the ownership of the same, so that the authorized ones do not respond for the debts or the assets that the account possesses.
Generally, joint accounts are given in situations in which the holders enjoy mutual trust with each other, since even if the signature of the rest is needed to operate, in case of discrepancies the claims services can freeze and block the account at waiting for this fact to be solved, being able to delay in time the possibility of carrying out the transaction.