# Joint Bank Accounts and Liabilities



## blaze (26 Jul 2010)

Hi

Someone I know has retired and opened a bank account. They want me to be on the list of people who can withdraw money so effectively its a Joint Account. Their name and mine. They want me to be able to access funds should they not be available. 

Are there any tax or other implications I should be aware of. Would this money be somehow classed as an asset to me or anything like that. 

Its just retirement savings so all taxes etc have been paid. 

Thanks


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## dewdrop (26 Jul 2010)

usually if a person wants another person operate their account a form is signed which authorises that person to operate the account.  the account remains in the sole name of the person. If the account is made a joint account with either to sign then problems can arise on the death of the original sole account holder as joint accounts revert to the survivor unless otherwise stated.


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## droileen (26 Jul 2010)

There are 2 distinct ways in which such an account can operate.  
The 1st is a joint account - where you are both the legal owners of the funds & both legally responsible for any debts on the account.
The 2nd is a sole account - where the funds, either debit or credit, are owned legally by a single person.  However, this sole person can authorise a mandate called a "Per Pro" that allows a 3rd party to make withdrawals, sign cheques etc., just as if the funds were there to do with, as they wished.  However, on death of the sole account holder, the "Per Pro" mandate is automatically cancelled & that 3rd party no longer has any access to, or claim on the funds.


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## blaze (26 Jul 2010)

Hi,

I this case its actually Parent / Daughter. The idea is that if there is a death (of parent) the account can be used by the daughter to access funds to pay for funeral related expenses etc. The balance if any would be for the daughter anyway to do with as she pleases

I guess my question is twofold now. I understand from the reply that if it is in a joint name either or both parties are responsible for any debts on the account which I guess is fair but...

if it is under joint ownsership then from tax and asset purpose (not sure if my terminology is right) is the daughter liable to disclose this as her asset while the parent is still alive as opposed to just something she doesn't own but has right to use.


thanks


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## blaze (28 Jul 2010)

Hi,

Thanks again dewdrop and droileen. Just looking for further clarification re the last point I made. 

Thanks


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## droileen (28 Jul 2010)

If it is a joint account, then it automatically becomes the ownership of the survivor - it does not have to go into Probate, unless it exceeds a certain figure - I`m not exactly sure what this figure is.


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## blaze (28 Jul 2010)

Hi,

Thanks again but while both parties are alive for assets purposes does the daughter need to declare it as part of her assets. Thats what I am not clear on. 

thanks


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