Does a Joint Bank Account Automatically Go to the Survivor in Ontario?
Often yes, but not always. Many joint accounts carry a right of survivorship, and the surviving holder then becomes the account owner. Between spouses, money on deposit in both names is deemed held as joint tenants.
The answer changes when an adult child was added to a parent's account without paying for it. The child is presumed to hold the money in trust for the parent and, on death, for the estate, and must show a gift was intended. Courts can look at the bank documents, who controlled and used the funds, any power of attorney and the account's tax treatment. The presumption of a gift applies only to minor children. Heirs may challenge a survivor, who may then need to show the deceased meant the money as a gift.
If the money falls into the estate, it counts toward estate administration tax, but jointly owned property that passes automatically to the other owner does not. Banks set their own paperwork for releasing money, so ask the institution what it needs.
Key takeaways
- Many joint accounts carry a right of survivorship, and the surviving holder then becomes the account owner.
- An adult child added to a parent's account without paying for it is presumed to hold the money in trust for the parent and, on death, for the estate.
- Courts can consider the bank documents, who controlled and used the funds, and the tax treatment of the account.
- Banks set their own documentation requirements, so ask the institution what it needs before you expect the money to be released.