Joint Property and Bank Accounts When Someone Dies Without a Will

When a parent or spouse dies without a will, the family often assumes everything goes through the intestacy rules. In fact, some assets never enter the estate. Joint bank accounts and jointly owned homes are common examples.

This article explains in general terms which assets pass by survivorship, which pass by beneficiary designation, and where disputes tend to arise. A lawyer can tell you how these ideas apply to your situation.

Why jointly held assets are different

Property a person owns at death, other than property passing by right of survivorship, devolves to and vests in the personal representative, who holds it in trust for those entitled. Jointly owned property passing by survivorship therefore falls outside the estate.

In plain terms, if two people hold an asset as joint owners with a right of survivorship, the survivor generally takes the whole thing when the other dies. The intestacy rules, which divide the estate among a spouse, children and other relatives, do not apply to that asset. How the asset is registered or titled is the first thing to check.

Not every joint holding carries survivorship. Tenants in common, for example, each own a separate share, and the deceased's share falls into the estate. The account agreement or title document usually shows which applies.

Common joint assets and what usually happens

For plans such as RRSPs, RRIFs and pensions, a participant may designate a beneficiary by a signed instrument or by will, and a will designation works only if it expressly relates to a plan. The plan administrator is discharged on paying the person named in the latest designation, absent actual notice of a later designation or revocation. A later designation revokes an earlier one to the extent of any inconsistency.

Joint accounts with adult children

A very common situation is a parent who added an adult child to a bank account for convenience, such as paying bills. After the parent dies, the child may say the money is theirs by survivorship, while the other children say it should be shared as part of the estate.

Jointly owned property that passes by survivorship falls outside the estate. Whether that settles things for a particular account depends on the facts, and a lawyer can help you assess it.

• Bank account opening forms and any later changes.
• Who deposited the money and who used it, and for what purposes.
• Any statements, letters or notes by the parent about their intentions.
• Whether the parent kept using the account or handed over control.
• Tax reporting on the account while the parent was alive.

If you are the surviving joint owner, avoid emptying the account or moving funds until you have advice. If you are another family member with concerns, gather what you can and raise them early.

Simultaneous deaths and other wrinkles

When two or more people die at the same time, or in circumstances making it uncertain who survived, the property of each is disposed of as if each had survived the other or others. Joint tenants or joint account holders in that situation are each deemed to hold as tenants in common. Insurance proceeds in those cases are paid under ss. 215 and 319 of the Insurance Act.

Even when an asset passes outside the estate, the estate may still need to be dealt with. A dependant can ask a court to order support from the estate where the deceased did not make adequate provision for their proper support, whether or not there was a will. Such an application generally cannot be made more than six months after the grant of probate or administration. Whether assets outside the estate can be reached in such a claim is a question for a lawyer.

What to do next

• List every asset and note whether it is in the deceased's sole name, jointly held, or has a named beneficiary.
• Get copies of account agreements, title documents and beneficiary designations.
• Do not withdraw, transfer or close joint accounts until you understand whose money it is.
• Keep records of any account activity before and after the death.
• Speak with a lawyer if family members disagree about a joint account, or if the estate may lack enough assets to pay debts and shares.

Frequently asked questions