Joint accounts and presumptions
Heather MacDonald, CEO Peoples Credit Union

There are times that a joint account is the perfect solution. When dealing with spouses or common-law partners, having assets registered jointly with right of survivorship can exemplify good planning.

However, accounts referred to commonly as "convenience accounts" are often a source of family conflict. These are assets where the owner puts the name of one or more of their children, nice/nephew or a friend on title to make it "easier" to deal with the account or asset.

If the roles and rights of the parties in the joint relationship aren't properly documented, these accounts can cause all sorts of problems. In most cases, these are

situations where the person setting up the account never indicated, or even really considered, how the account should be handled on death.

There have been so many instances where courts have been called upon to make the determination of who really owns a joint asset after death that there are established legal presumptions governing joint accounts.

When an account is joint with a spouse or common-law partner, the court presumes that the intention was that the account was supposed

to pass to the survivor. Anyone who claims that isn't the case must provide proof to the court to overturn that presumption.

However, when an account is joint with someone other than a spouse or common-law partner, there is an opposite presumption; namely, that the individual intended to create a convenience account and upon death the assets are to revert to the estate of the person who initially established the account. In these circumstances, a joint owner claiming to be entitled to the funds

on death must be able to prove to the court the intention of the other person in order to get the assets.

We would be pleased to help you with any questions you may have about the above subject. Just drop into the Stroud or Alcona branch of Peoples Credit Union, or call 436-1910 or 436-6005.

*Source - Concentra Financial

The proceeding information was provided by Heather MacDonald, CEO of Peoples Credit Union.