Joint account

A joint account offers the same features and benefits as a personal chequing or savings account held by one person. It allows two (or more) people to use the same account to make deposits, payments, withdrawals and conduct other account business.

As well as joint bank accounts, it is possible to have joint investment accounts (non-registered).

The joint account holders share access to the account and are responsible for any transactions made. For example, if the account has overdraft protection, all account holders may be responsible for repaying debts.

Right of survivorship

In many cases, joint accounts include the right of survivorship. This means that if one of the account holders dies, the surviving account holder becomes the owner of the account, with the right to deposit, withdraw, and deal with the funds in the account.^[1]

Risks of a joint account

Before considering a joint account setup one should be aware there are risks^[1] such as:

control over the account
relationship breakdown
accountability
legal disputes
creditors

Tax considerations

Joint account holders must carefully consider the tax considerations of a joint account, in particular income attribution rules.

In the case of non-registered investment accounts, the adjusted cost base can be impacted if investments are transferred in-kind.

References

^ ^a ^b "What every older Canadian should know about: Powers of attorney (for financial matters and property) and joint bank accounts". Government of Canada - Canada.ca. 2016-10-24. Retrieved 2023-01-17.

External links

"Joint accounts". Financial Consumer Agency of Canada - Canada.ca.
"Should you open a single or joint bank account?". TD Canada Trust.
"Joint Bank Accounts: Make Banking Together Easy". BMO.
"FP Answers: What are the tax implications of joint investment accounts?". Financial Post.
"How are jointly held investment accounts taxed?". MoneySense.
"How can you minimize probate fees - Joint Ownership of Assets?". TaxTips.ca.
"Attribution Rules re Gifts, Transfers, or Loans to a Spouse or Minor Child - Investments Held Jointly With Spouse". TaxTips.ca.
"Transfers of property to your spouse or common-law partner or to a trust for your spouse or common-law partner". Government of Canada - Canada.ca.

[canada-1] "What every older Canadian should know about: Powers of attorney (for financial matters and property) and joint bank accounts". Government of Canada - Canada.ca. 2016-10-24. Retrieved 2023-01-17.

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