This presentation will help with anyone who has considered either adding their children to their investment accounts, or is considering adding their children to their joint investment accounts in order to avoid probate.

1. Not-So-Great Ways to Manage
Joint Accounts with Aging Parents

2. In some cases, aging parents wish to
add their adult children to their bank
accounts and investment accounts
They may desire to avoid probate
fees when they pass away

3. Potential Issues
1) Loss of control – by adding a joint owner, you give up control
of your asset
2) Open up to creditor risks – if the adult child added to the
account has some legal or financial issues (ie. bankruptcy or
divorce), the parent’s account might be open to those creditors.
3) Sibling Disputes – if mom and dad only wished to avoid
probate, and added only one of their children to the account –
the other children may get “cut out” from inheriting their share
of that account.
4) Tax Issues – the CRA may deem that the parent sold a portion
of that account when the adult child was added, which may
trigger capital gains taxes if there is growth in the investment
account

4. So, What Should Aging Parents Do?
1) Remember that probate is not as big of a deal as it can be
made out to be
• 0.5% on first $50,000 in the estate
• 1.5% on estate assets over $50,000
• Ie. if mom and dad pass away with $250,000 in bank
accounts and joint investment accounts, that works out to
$3,250 of probate on those assets
2) Do the basics to manage your estate
• Name beneficiaries on RSP/RIF/TFSA/Life Insurance
• Have Powers of Attorney for Property and Health
• Use trusts
• Give while alive?
• Communicate, communicate, communicate with your
loved ones

5. Disclaimer: This material is general in nature (and I hope you find it
helpful!)
But, in real life you should absolutely speak with an advisor familiar
with your financial situation before making any decisions.
Specifically, for joint accounts and estate planning, those
professionals will include a qualified tax lawyer and estate lawyer.
Thanks for reading!
Send questions to retiremepod@gmail.com