In Ontario, How Does Estate Planning Treat Money in a Savings Account?
In Ontario, money in a savings account is considered part of a person’s Estate and is subject to the Estate Planning process. This means that when a person passes away, their savings account (and any other assets they owned) will be distributed according to their Will. If they do not have a Will, according to the rules of Intestacy in Ontario.
If the person who owned the savings account had designated a beneficiary for the account, such as through a pay-on-death or transfer-on-death designation, the money in the account will pass directly to the beneficiary outside of the Estate and will not be subject to the Estate Planning process.
It’s important to note that if a savings account is jointly owned, the surviving account holder will usually become the sole owner of the account upon the other account holder’s death, regardless of the provisions in the deceased person’s Will. This is an important distinction as many people do not realize that agreements made with Banks, Investment and Insurance companies supersede the directions of your Will.
If you have questions about how your savings account or other assets will be treated in the Estate Planning process in Ontario, it’s a good idea to consult a lawyer specializing in Estate Planning.
Check out our blog post on What Makes a Valid Will
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This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.