Why joint accounts can cause family feuds
Joint accounts can simplify financial management for aging parents and their adult children, but they come with significant risks. Legal disputes often arise over ownership and access to funds after the death of a co-account holder. Alternatives like appointing a power of attorney may provide safer options for managing finances without the complications of joint accounts.
- ▪The Supreme Court of Canada ruled that clear evidence is required for a non-spouse to inherit money from a joint account as a gift.
- ▪Adding a child to a parent's bank account exposes the parent to the child's creditors and risks misuse of funds.
- ▪Joint accounts can become tools for manipulation in estate disputes, complicating the transfer of funds after death.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:Joint accounts are often set up as an easy way for adult children to help aging parents pay the bills, but there are significant risks.Jacob Wackerhausen/iStockPhoto / Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountWho owns the money in a joint account when a co-account holder dies? Jonathan Hooper, partner and estate lawyer with Tupman & Bloom LLP in Halifax, says the Supreme Court of Canada made it clear in a 2008 decision that if a non-spouse is meant to receive the money in a joint account as a gift, it requires clear evidence in writing.Nevertheless, litigation still occurs frequently among heirs, he says. Globe Advisor spoke with Mr.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
