Exemples of ''Joint Account'' in a sentence

Use joint account in a sentence

• You may want to open a joint account with someone you trust so that someone can always have access to it.
  Source: BusinessDictionary
• One of the perks of getting married to my wife is the ability for us to start a joint account for our checking needs, since now we can both direct deposit our paychecks right into the account, and both draw the funds when we need it.
  Source: BusinessDictionary
• My bonus was paid into the joint account last week and my wife already spent most of the money to pay bills.
  Source: BusinessDictionary
• We pay into the joint account for running the household.
  Source: I am moving in with my boyfriend but should we get a joint account? | This is Money
• Joint accounts can create problems long after a marriage is over.
  Source: The 11 Most Commonly Asked Credit Questions - Yahoo! Finance
• If you hold any joint accounts at the same credit union, up to $250,000 of each account holder's share is covered.
  Source: Money Power: Most credit union accounts covered by deposit insurance | Tulsa World
• With a joint account, you will be equally responsible for the payment of the account along with your wife.
  Source: New citizen tips for building good credit
• - RobertBurns , Aberdeen, 25/3/2013 15:52 Click to rate Rating 7 Report abuse we have seperate accounts plus a joint account.
  Source: I am moving in with my boyfriend but should we get a joint account? | This is Money
• It would be nice to set up a joint account for paying household bills but I am aware that this might come with pitfalls.
  Source: I am moving in with my boyfriend but should we get a joint account? | This is Money
• Facebook allows you to set up a joint account, but making it work as a marketing tool depends on your own team coordination.
  Source: Having a Joint Facebook | Business & Entrepreneurship - azcentral.com
• Most likely, it could be that a creditor reported that one of the two joint account holders has passed away, but its the wrong person.
  Source: Betty Lin-Fisher: What to do with accounts when a spouse dies - Business - Ohio
• She had previously asked her husband to pay the bills using money from the joint account she shared with her mother, and gave him her PIN.
  Source: Former Woodlands coach in court
• He transferred a total of $2.3 million from the company's bank account into his personal account, joint account and to his wife's account.
  Source: Pathological gambler jailed 7 years for forgery involving $2.3m
• If you added the authorized user, you can revoke it, but you generally can't kick someone off a joint account.Contact your creditors.
  Source: Don't let your ex trash your credit - - MSN Money
• - tommy , Denbigh, 27/3/2013 21:38 Click to rate Rating 4 Report abuse We never got round to having a joint account - I don't think we even got round to discussing it.
  Source: I am moving in with my boyfriend but should we get a joint account? | This is Money

Risks of joint bank accounts

Most consumers sock away cash into bank accounts -- checking, savings, certificates of deposit -- to maintain liquidity. But opening a joint bank account, whether with family members or business associates, has potential pitfalls even as it offers convenience.

While pooling your money may imply love or trust, the ramifications of joint accounts can elude both parties. Here's what you need to know.

Rights of ownership

Drama most often crops up during marital discord, but the same drawbacks apply to joint banks accounts held by:

• Minor children and parents.
• Elderly parents and adult children.
• Cohabitating couples.
• Roommates.
• Business partners.

"You can have a joint account with anyone in the world, but once we're jointly on that bank account, once we sign the papers, both of us have 100 percent rights to that account," says Sandra M. Radna, a family attorney with Radna & Androsiglio in New York.

No matter who started the account or who put in more money, she says, "In the eyes of the law, you're equal holders."

Account co-owners enjoy the right to spend, give away or transfer funds to other accounts, without the consent or knowledge of other account holder(s). In many cases, the "wronged" party can get back some of the money, but legal action is required.

"There is no protection for either party with a joint account," says Brent Adams, senior vice president at Private Bank of Buckhead in Atlanta. "There is nothing (the bank) can do to protect either party if the other person comes in and withdraws all the money."

Rights of survivorship

In addition, most joint accounts carry rights of survivorship. "So, if one of the joint holders dies, there is nothing the surviving joint owner has to do to get that money," says Radna.

That can be an upside, but there may be unexpected consequences. Mahlia Lindquist, an estate lawyer in Boulder, Colo., says, "You may unintentionally subject your assets to the claims of someone else's creditors, disrupt your estate plan and trigger higher taxes."

In many cases involving families, the added co-owner of the account upholds wishes for financial sharing upon the other's death. However, when you give money outside the normal estate settling process, "gift" taxes can come into play.

Risk of tax triggers

If someone other than a spouse is co-owner of a bank account while all parties remain alive, additional tax issues may arise.

"When you put money into an account, it isn't necessarily a gift, but if that person takes money out of the account in excess of the $13,000-a-year limit, then that would be treated as a gift, and you might have a gift tax filing requirement," says Benjamin C. Sullivan, an associate with Palisades Hudson Financial Group, in Scarsdale, N.Y.

What happens to funds in the Joint Account if one of the accountholders dies?

This will depend on the terms that govern the account and the direction provided by the accountholders to us at the time the Joint Account is opened. In some cases, the Joint Account may have a right of survivorship which allows TD Canada Trust to pay the account balance directly to the surviving joint accountholder(s).

Note: In Québec, a joint account is frozen upon the death of one of the joint account holders. Talk to us about how this works.

If one accountholder dies and the account has been designated by the accountholders in our records as having a right of survivorship, we are entitled to pay the funds to the surviving accountholder(s).

We are, however, not in a position to determine whether the surviving accountholder(s) may keep the funds as their own or whether they should be distributed in accordance with the deceased's will or provincial laws governing estate matters. In some cases, legal ownership of the funds could be challenged by others who may think they have an interest in the account such as beneficiaries of the deceased's estate. A surviving joint accountholder may have to demonstrate that the deceased accountholder intended the remaining funds be a gift to the joint account holder. This could potentially lead to delays in the surviving accountholder being able to access funds in the account.

Consider whether you would benefit from making pre-authorized automatic payments to service providers and arrange with them and us to set up these payments from your bank account.

If you need additional assistance, consider whether a power of attorney is right for you. For more information on powers of attorney, please see the following link: td.com/to-our-customers/power-of-attorney.jsp

Understanding Joint Bank Accounts

At TD Canada Trust, our personal deposit accounts may be set up in the names of two or more individuals. These are referred to as “Joint Accounts”. When a Joint Account is set up with us, the accountholders must decide whether their joint consent is required to withdraw funds or otherwise transact or provide instructions in respect of the account or whether either of them may do this on their own.

Joint accounts can help you pay household bills or manage other shared expenses with a spouse or family member, especially if you have health or mobility issues that make it more difficult for you to manage your personal banking on your own. In addition, a parent may consider setting up a joint account with a family member, such as an adult child, if they are planning to be out of the country traveling or vacationing for an extended period or following the death of a spouse who typically handled the household finances.

Unless you set up the Joint Account to require all accountholders to instruct us or transact on the account jointly, any accountholder may transact without your consent. Transactions include deposits, withdrawals, transfers and account closure. This means that:

• You will be responsible for all transactions initiated by the other accountholder(s) just as though you made the transactions yourself.
• Other accountholder(s) generally have the right to withdraw some or all of the funds in the Joint Account at any time regardless of who deposited the funds into the account.
• You may be exposed to financial problems of another accountholder where the accountholder has unpaid debts and a creditor seeks to recover amounts it is owed by seizing the funds in the Joint Account.
• You are responsible for any transactions that result in an overdraft in your Joint Account even where caused by the other accountholder(s). For example, a cheque deposited to the Joint Account by another accountholder may be returned due to insufficient funds (“NSF”). If payments were made out of the Joint Account in reliance on that NSF deposit, the Joint Account may be put into an overdraft position and you will be responsible for all related interest and fees owed to us.

Transaction Accounts

Sometimes a temporary joint account is opened by two parties entering into a transaction where one party needs a security for the fulfilment of the transaction and the other party has to pay the sum (deposit), being the security for the other party. Any payment from the joint account, or return of the deposit from the joint account, will only be possible if both parties sign a joint written instruction to the bank. It is not possible that only one of the parties gives instruction for payments of the joint account.

Because (European) banks are not very interested in opening temporary joint accounts, as they are normally used for one transaction only, there are specialised parties or companies taking care of such accounts as trustees. A temporary joint account is normally closed after the transaction for which it was opened has been concluded. Temporary joint accounts are used in transactions in which large sums of money are involved as an alternative to letters of credit or escrow accounts.

Survivorship Accounts vs. Convenience Accounts

In the United States, there are typically two types of joint accounts - survivorship accounts and convenience accounts. Either joint owner of the account may withdraw funds during the lifetime of both owners, and most states have statutes protecting the bank from claims brought by one joint owner against the bank if the other owner "wrongfully" withdraws funds from the joint account. The distinction between survivorship and convenience accounts matters at the death of one of the owners. If the joint account is a survivorship account, the ownership of the account goes to the surviving joint account holder. Joint survivorship accounts are often created in order to avoid probate.^[1] If two individuals open a joint account and one of them dies, the other person is entitled to the remaining balance and liable for the debt of that account.

If the account is a convenience account, if the person who placed the funds originally in the account dies, the joint owner does not become the owner of the account. Instead, the account becomes a probate asset of the deceased person. If the joint holder passes who was simply put on the account for "convenience" purposes, the original owner of the account continues to own the account, unaffected by the death of the convenience account holder.

How to tell whether the account is a survivorship account or a convenience account will depend on the bank's account opening forms. The form will typically include a choice for designating the account as a joint account with right of survivorship ("JTWROS") or a joint account for convenience purposes.

A special type of joint account with right of survivorship, called a tenancy by the entireties account, is used for survivorship accounts between spouses. This special type of tenancy by the entireties account will typically offer the account holders protection from creditors under applicable state law.

Joint accounts: Only cons

We’ve chosen not to go the route of 64% of couples.

 9

Every week, I get dozens of press releases from media professionals across the country looking to have their story featured on MoneySense.ca. Some are about new products, others are about upcoming events but the vast majority are findings from some survey or other. I pay most attention to the ones that cast the spotlight on some piece of information that you, dear reader, may find helpful on your personal journey to financial independence. This week however a press release on the topic of love and money caught my eye and entirely for selfish reasons: I’m getting hitched in 6 weeks.

TD Canada Trust surveyed adults in committed relationships and found 79% of Canadian couples have joint finances; no surprise there. But here’s where it gets interesting, well for me anyway. The top three personal finance products that Canadians combine with their partner are a joint bank account (64%), a mortgage (60%) and a joint credit card (50%), the bank found. Looks like my husband-to-be and I are taking the road less travelled.

Sure, I’ll be adopting a portion of the mortgage on Michael’s (and soon our) home. But unlike the majority of respondents to the TD poll, we recently made the decision not to open a joint bank account to pay for household expenses like groceries and utilities since neither of us is comfortable closing our existing accounts in favour of a single joint account. After discussing the logistics and monthly fees involved in transferring money from two individual accounts into a third account, we came to the conclusion that it just wouldn’t pay.

Instead, we thought, why not open a joint credit card to pay for all shared expenses? It’s convenient and reduces transaction costs. It also allows us to adjust our individual contributions from month-to-month. We suspect it’ll take a few months for us to determine exactly how much I’ll be contributing to the monthly bills anyway. You see, Michael is used to carrying the cost of the house on his own while I’ve grown accustomed to aggressively saving and budgeting for the odd luxury item (oh the spoils of living at home). We’re both looking forward to this new financial chapter of our lives and realizing our goals together. Ideally, we’d like to accelerate our mortgage payments but not at the expense of my retirement savings for instance. Realistically, we’re not going to achieve the perfect balance right off the bat. Paying the bills from a joint credit card will allow us to track our monthly expenses and test various splits as we go.

Of course this strategy means we’ll have to be extra diligent about paying off our bill to avoid costly interest fees, but neither of us carry a monthly balance on our credit cards so it really doesn’t require a change in habits. And we’ll be able to earn cash-back by paying with a reward credit card which should in theory help us reduce our monthly bills.

Meanwhile, I’ll transfer my share of the mortgage to Michael in lump sums and he’ll continue to pay the mortgage from his existing account. From our perspective it’s a very cost-conscious approach. But we’re clearly not in the majority here so I figured I’d consult TD’s Janice Farrell Jones for a second opinion.

“I wouldn’t say that there’s necessarily any real flaw in your strategy,” she said. “It is a good place to start with one product first, learn about each other that way and go from there.”

Jones also stressed the importance of clearly defining what our joint credit card should be used for. “What are you looking to spend on and do you have the same views on spending habits. Would you treat (the card) the same way?”

If there’s anything the study shows is that there’s no one-size-fits-all approach and we’re on the right track, Jones said, adding that a financial plan is key regardless of how we decide to combine our finances.

“A financial plan is really what’s helping you toward those long-term goals. If you are in a long-term, committed relationship, that’s likely what’s going to matter most down the road,” she said. The TD study found only 36% of Canadian couples have a common financial plan.