questions after death: bank accounts/life insurance

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
Post Reply
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

questions after death: bank accounts/life insurance

Post by miguel »

i have a two questions

1. one fine day out of the blue hubbie drops dead. couple have a joint account. uncaring bank freezes the account. so how the hell does grieving widow get to the cash? she has to eat. there is a will in place. funerals ain't cheap

2,how long does it usually take to collect life assurance? I have heard it might be up to 60 days even if, as usual, it turns out to be a routine death

3, how does widow get the annuity money to continue to be paid if joint account is frozen?

i would like to hear from all of you

thanks
Spudd
Veteran Contributor
Veteran Contributor
Posts: 1518
Joined: 22 Sep 2013 14:52

Re: questions after death: bank accounts/life insurance

Post by Spudd »

I thought banks don't freeze joint accounts - that's the advantage of having them joint, so the remaining spouse can still access it after death.

Based on this article:
http://estatelawcanada.blogspot.ca/2011 ... cutor.html
it seems like for spouses they won't be frozen but for parents/children they could be.

I don't know the answers to your other questions.
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

THANKS

i WILL CONFIRM WITH MY BANK RE JOINT ACCOUNT REMAINING FREE FOR WIFE
User avatar
kcowan
Veteran Contributor
Veteran Contributor
Posts: 16033
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: questions after death: bank accounts/life insurance

Post by kcowan »

Also we found that TD would advance funds to the funeral home and the estate lawyer from an account in Dad's name only. YMMV
For the fun of it...Keith
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

that is good news

especially in a time of grief
OhGreatGuru
Veteran Contributor
Veteran Contributor
Posts: 1361
Joined: 27 Mar 2010 16:01

Re: questions after death: bank accounts/life insurance

Post by OhGreatGuru »

Joint bank accounts (assuming they are Joint With Right of Survivor - JWROS) are no problem. They are outside of estate, and widow immediately assumes ownership. Bank will eventually want a copy of Death Certificate to change name.

Assuming Annuity is also JWROS, same deal. Send copy of of death certificate to Annuity company to sort out paperwork, but there should be no interruption in payments. As joint account is not frozen, there is no problem with access to the payments.

I don't have broad enough experience to say how long Insurance companies take on average. It was less than 3 weeks in the case of my late father.

You should be aware that banks may freeze, or at least restrict access to, joint safe deposit boxes until they see a probated will. This is to protect their liability in case the spouse runs off with the will and valuables that may have been willed to others). This can be a major nuisance. My father's advice (after an unfortunate experience a friend had) was to clean out the safe deposit box before you tell the bank the co-owner is dead.
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

guru

thanks for that

it is re-assuring

as far safety deposit box is concerned, thankfully, in this instance, it does not apply
User avatar
kcowan
Veteran Contributor
Veteran Contributor
Posts: 16033
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: questions after death: bank accounts/life insurance

Post by kcowan »

OhGreatGuru wrote:You should be aware that banks may freeze, or at least restrict access to, joint safe deposit boxes until they see a probated will. This is to protect their liability in case the spouse runs off with the will and valuables that may have been willed to others). This can be a major nuisance. My father's advice (after an unfortunate experience a friend had) was to clean out the safe deposit box before you tell the bank the co-owner is dead.
TD allowed my brother and I to access the box held our father with a bank employee present who made an inventory of its contents. The will was there and we got a copy of it from them.

They did explain that this access was not required but that they had some flexibility in certain cases.
For the fun of it...Keith
qasimodo
Contributor
Contributor
Posts: 355
Joined: 02 May 2010 12:08

Re: questions after death: bank accounts/life insurance

Post by qasimodo »

kcowan wrote:TD allowed my brother and I to access the box held our father with a bank employee present who made an inventory of its contents. The will was there and we got a copy of it from them.
For that reason, mother's will is being held in the safe deposit box of the executor
oxymoronic marketers pitch: "... and make ads more relevant"
User avatar
ghariton
Veteran Contributor
Veteran Contributor
Posts: 15954
Joined: 18 Feb 2005 18:59
Location: Ottawa

Re: questions after death: bank accounts/life insurance

Post by ghariton »

My great-uncle lived in Montreal, but distrusted the Quebec government (especially the PQ) and kept valuables in a safety deposit box in Ottawa. I had a power of attorney to access the box. When he died, my mother, the executor of his will, gave me a copy of the will and asked me to bring her the contents of the box. When I presented the copy of the will to the branch manager, he waived it away, saying that there was no need, since I already had a power of attorney.

I didn't have the heart to tell him that the power of attorney had died with my great-uncle.

George
The juice is worth the squeeze
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

ghariton wrote:My great-uncle lived in Montreal, but distrusted the Quebec government (especially the PQ) and kept valuables in a safety deposit box in Ottawa.

George
I remember very well that was the common sentiment at the time, in light of the first referendum, amongst many in this neck of the the woods

:(
Last edited by miguel on 04 Feb 2017 13:38, edited 1 time in total.
User avatar
kcowan
Veteran Contributor
Veteran Contributor
Posts: 16033
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: questions after death: bank accounts/life insurance

Post by kcowan »

qasimodo wrote:
kcowan wrote:TD allowed my brother and I to access the box held our father with a bank employee present who made an inventory of its contents. The will was there and we got a copy of it from them.
For that reason, mother's will is being held in the safe deposit box of the executor
Good idea. In our case, my brother and I were joint executors. There was no lawyer on retainer. My brother had a copy but the lawyer wanted a certified copy.
For the fun of it...Keith
User avatar
ghariton
Veteran Contributor
Veteran Contributor
Posts: 15954
Joined: 18 Feb 2005 18:59
Location: Ottawa

Re: questions after death: bank accounts/life insurance

Post by ghariton »

I thought that the lawyer who draws up a will would retain a copy.

In my case, that lawyer is also a co-executor, so keeping a copy makes eminent sense for her. But I would have thought that even if the lawyer is not an executor, he or she would keep a copy. I know that I have kept copies of all documents I have produced for clients over the last twelve years, since I became a lawyer. (Old files never die, they just fade with age.)

George
The juice is worth the squeeze
qasimodo
Contributor
Contributor
Posts: 355
Joined: 02 May 2010 12:08

Re: questions after death: bank accounts/life insurance

Post by qasimodo »

ghariton wrote:I thought that the lawyer who draws up a will would retain a copy.
Sometimes, but not in this case. So we decided it was better and more accessible in the safekeeping of the executor than her own safe deposit box (The executor would require the will to access the safe deposit which contains the will)
oxymoronic marketers pitch: "... and make ads more relevant"
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

Spudd wrote:I thought banks don't freeze joint accounts - that's the advantage of having them joint, so the remaining spouse can still access it after death.

Based on this article:
http://estatelawcanada.blogspot.ca/2011 ... cutor.html
it seems like for spouses they won't be frozen but for parents/children they could be.

I don't know the answers to your other questions.
i spoke to the bank

they say joint accounts are indeed frozen once they get notified of a death

but it all gets sorted out in time after the joint account is designated as an 'estate account'

but it takes time

the bank says both spouses (while still alive) should open up individual accounts, as well as keeping the joint account, and that any unneeded excess funds be moved over before death

are there any views on this as i find the info contradictory

thanks for all your help
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13267
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: questions after death: bank accounts/life insurance

Post by Peculiar_Investor »

You haven't mentioned with bank (or which province), so I checked TD Bank Financial Group
TD Bank wrote: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.
Based on the fact your profile says Location: Montreal, you might be running into that last part.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: questions after death: bank accounts/life insurance

Post by AltaRed »

Seems Quebec is very contrary to the rest of Canada in the matter of joint accounts. The purpose of a JTWROS type joint account (either or for signatures) is to make it a seamless transition to the surviving spouse. Which is exactly what happened when my father passed away. My mother continued to use the account without missing a beat. Indeed, she didn't even get a new set of cheques with only her name pre-printed on the cheques.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
miguel
Contributor
Contributor
Posts: 53
Joined: 06 Jul 2016 22:09
Location: Montreal

Re: questions after death: bank accounts/life insurance

Post by miguel »

Peculiar_Investor wrote:
TD Bank wrote: 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.
Based on the fact your profile says Location: Montreal, you might be running into that last part.
ok thanks

it seems, no surprise to me, that quebec province is different from all others

so what else is new? :x
OhGreatGuru
Veteran Contributor
Veteran Contributor
Posts: 1361
Joined: 27 Mar 2010 16:01

Re: questions after death: bank accounts/life insurance

Post by OhGreatGuru »

I was going to ask what province Peculiar_Investor is in, but the question is answered. Civil Law in Quebec is different than the rest of the country. This is apparently one of the differences.
Post Reply