# Account access authorization - a bad idea?



## Alltimegreat1 (Feb 25, 2015)

I am a US citizen living in Germany. My German wife (NRA, no ITIN) would like to grant me account access authority for her bank account in the case of an emergency. This would allow me to go to the bank counter with my passport and conduct transactions from her account. I have granted her this access to my account. We don't have any joint accounts.

If I am granted access authorization to her account, I'm pretty sure this would mean I'd need to report this account on my FBAR/FINCEN. That's not a big deal. My question however is will this give rise to any reporting requirements for my wife to the US government, IRS, etc.?

Thanks in advance for the input!


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## Bevdeforges (Nov 16, 2007)

Until and unless she takes US citizenship or gets a Green Card, she won't have any reporting obligations to the US. And yes, you will have to report her account on your FBAR if you have signature access to it. But in the grand scheme of things, that's not really a big deal.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Bevdeforges said:


> Until and unless she takes US citizenship or gets a Green Card....


Or meets the definition of "United States person" described in the instructions to FinCEN Form 114. That definition is a _little_ broader.


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## Alltimegreat1 (Feb 25, 2015)

BBCWatcher said:


> Or meets the definition of "United States person" described in the instructions to FinCEN Form 114. That definition is a _little_ broader.


"United States Person. United States person means United States citizens (including minor children); United States residents; entities, including but not limited to, corporations, partnerships, or limited liability"

It's good to be precise here. In my case I don't think it will make a difference though.


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## BBCWatcher (Dec 28, 2012)

And note in particular that the word "legal" does not appear in front of the word "residents." It's quite possible, even common, to violate one set of laws (immigration) and still be subject to another set (financial reporting).


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## BBCWatcher (Dec 28, 2012)

Turning back to the original question for a moment, I always recommend keeping your spouse informed of any such responsibilities. Let her know, up front, that you'll be required to report any/all accounts to which she grants you access. Then let her decide whether she's comfortable with that or not.

If she isn't comfortable with that, then there are some possible alternatives that likely accomplish the same goals but without a reporting obligation (as I understand it). One option available in many countries is that she can get a supplemental credit card, a second card printed with your name that's tied to her credit card account. Then she sets up her credit card account for automatic full balance payment from the bank account. Then lock that supplemental credit card in a drawer. In an emergency you can use the card. That approach provides emergency access to the funds without providing actual, reportable authority over the account itself.

Another approach is a limited, non-account-specific power of attorney that remains dormant unless and until a specific trigger occurs (such as medical incapacitation, inability to contact her for more than 72 hours, etc.)

Yet another approach is she simply transfers funds to you, sufficient for emergency purposes, though just keep an eye on foreign gift limits (IRS Form 3520).

I'm not necessarily recommending any of these approaches, though. I don't think there's any problem whatsoever in adding an account to a FBAR, but perhaps she feels differently. If my spouse felt differently, I'd have to respect that.


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## shidareume (Mar 30, 2015)

BBCWatcher said:


> One option available in many countries is that she can get a supplemental credit card, a second card printed with your name that's tied to her credit card account. Then she sets up her credit card account for automatic full balance payment from the bank account. Then lock that supplemental credit card in a drawer. In an emergency you can use the card. That approach provides emergency access to the funds without providing actual, reportable authority over the account itself.


Are you sure this is a legitimate way to get out of the reporting requirement? Seems to be at least not in the spirit of the rules.


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## Bevdeforges (Nov 16, 2007)

shidareume said:


> Are you sure this is a legitimate way to get out of the reporting requirement? Seems to be at least not in the spirit of the rules.


I suspect it depends on how credit cards are set up in the country in which you live. Here in Europe, a credit card is often linked to a bank account and to have a credit card on the account, you have to be an "owner" of the account.

While you don't have to report credit cards on the FBAR system, you do have to report accounts you have access to, which may be more or less the same thing. But there is a section on the FBAR for reporting accounts over which you have signature authority but "no financial interest." It's intended for people who can sign checks for their employer's account or for an association or club of which they are the treasurer or president. If they really wanted or "needed" to get access to an account they thought you were involved with, they might invoke that part of the FBAR reporting - though it would be a bit of a long shot. (Or so I should hope.)
Cheers,
Bev


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## ForeignBody (Oct 20, 2011)

Going back to the original question, yes a joint account would have to be reported on FBAR and no, that of itself does not bring about any other reporting requirements.

My own view is live life as you want to, including a joint account if that's what you want. You are completing FBAR already, this is just one more entry.


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## BBCWatcher (Dec 28, 2012)

shidareume said:


> Are you sure this is a legitimate way to get out of the reporting requirement? Seems to be at least not in the spirit of the rules.


Read the instructions and follow the instructions.

But, for what it's worth, there's a background reason credit card accounts are not generally reportable: they tend to be very well monitored and reported already.


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