A joint account, for better or for worse

A joint account is just like a personal account. The only difference is that 2 people have access to it to make transactions: withdrawals, transfers, deposits, cheques, payments, etc. In addition to letting you accumulate money quickly, joint accounts make managing joint expenses easier. Finally, a joint account allows two people to do what may, at times, be difficult to do alone: save.

But is a joint account always a good idea?

Only the 2 people involved can answer this. What, precisely, is the purpose of this account? Who will pay what? How much will each person deposit, and how often? How will transactions be made? What are your savings objectives and those of your spouse?

Some couples choose to have joint accounts. Instead of having individual accounts, they put all their income in a single account, from which each withdraws money according to his or her needs. But if trouble should arise, one of the partners may develop some resentment towards the other who made fewer deposits. Money is one of the most common sources of disagreement between people.

A joint account can be a useful tool but, in case of doubt, it may be better to stay away from it. Many couples choose to have separate accounts, and they are just as happy.

What happens when one of the account holders dies?

When one of the holders of a joint account dies, the account in question is frozen by the caisse. It cannot be accessed until the estate has been settled, which may take weeks or even months.

The caisse does this for the following reasons:

• By virtue of an agreement on the management of joint accounts, no financial institution may legally allocate funds at the time of the death. Only a will or marriage contract can allow for "a gift mortis causa" (a gift made in contemplation of death).
• Since the caisse does not know who put what into the account or the proportion of co-ownership of the sums deposited, it cannot unfreeze these amounts until the liquidator of the estate and the surviving co-holder have reached an agreement.

It may therefore be wise to deposit your income in an individual account first, and then have the funds automatically transferred into a joint account. This way if a co-holder passes away, the surviving spouse need only put an immediate end to the transfers to ensure the money stays in his or her individual account.

	At the caisse	Make an appointment with a caisse advisor: online by phone