While an authorized signer can manage transactions on the account, they do not have any ownership rights. In other words, if the owner were to pass away, the authorized signer would not retain their rights to the account. A joint account holder on the other hand can both manage transactions and has ownership status.

Since authorized signers don’t have ownership status, they typically aren’t held responsible for account debts or overdraft. However, they are expected to act with permission of the account holder and can be held accountable for performing any fraudulent activities.

Adding or removing an authorized signer will typically require the account holder to go to their respective bank. There they will need to fill out specific forms and provide written authorization to add an authorized signer and just written documentation to remove an authorized signer.