Joint bank account instead of will?
May 22nd 2013, 12:54 pm
#16
Daffyd Duck
Joined: Jul 2008
Location: Paradise
Posts: 5,636
Re: Joint bank account instead of will?
What if you don't die but become incapacitated?
Some suggest, in addition to a will, set up a Living Revocable Trust with a disability clause. http://wills.about.com/od/overviewof...osoftrusts.htm
Is this something appropriate in Australia?
Some suggest, in addition to a will, set up a Living Revocable Trust with a disability clause. http://wills.about.com/od/overviewof...osoftrusts.htm
Is this something appropriate in Australia?
Last edited by commonwealth; May 22nd 2013 at 1:00 pm.
May 22nd 2013, 11:35 pm
#17
Forum Regular
Joined: Mar 2013
Posts: 255
Re: Joint bank account instead of will?
What if you don't die but become incapacitated?
Some suggest, in addition to a will, set up a Living Revocable Trust with a disability clause. http://wills.about.com/od/overviewof...osoftrusts.htm
Is this something appropriate in Australia?
Some suggest, in addition to a will, set up a Living Revocable Trust with a disability clause. http://wills.about.com/od/overviewof...osoftrusts.htm
Is this something appropriate in Australia?
Then of course there will come the question of Capital Gains Tax [CGT] on property if it is sold at any time, as it would no longer come under the provision of CGT free as it is owned by a trust.
Other than that, it is an excellent idea. One I have previously thought about and discounted due to the costs and the CGT implications.
But maybe it is worth more exploration again.
Jun 8th 2013, 2:55 pm
#18
Retired
Joined: Apr 2004
Posts: 34,649
Re: Joint bank account instead of will?
How do joint bank accounts work in Australia? Let's take the "either or" type where one person can deposit/withdraw without the other's signature/approval needed.
In case one person passes away, will the other person automatically become the sole account owner of the funds without the need for any will/estate proceedings?
Here in Singapore it works this way so a lot of people have joint accounts to prevent the other being locked out/having to go through all the painful formalities in case something happens (of course I am aware that if something happens to both then that is a problem).
In case one person passes away, will the other person automatically become the sole account owner of the funds without the need for any will/estate proceedings?
Here in Singapore it works this way so a lot of people have joint accounts to prevent the other being locked out/having to go through all the painful formalities in case something happens (of course I am aware that if something happens to both then that is a problem).
Other jointly held assets, such as real estate, may also transfer this way, but it depends on whether it's structured as a "joint tenancy" or "tenancy in common". You'd need state-specific legal advice to know more.
Even if some of your assets are held jointly, you still need a will to deal with anything else. You also need to consider guardianship for children and a living will to deal with medical issues if you become incapacitated. Again - a lot of this is going to be state-specific.
If you have a will in Singapore, it may be acceptable in the Australian state courts as an out-of-jurisdiction basis (again - discuss with lawyer) but as soon as you re-establish residence in Australia, you should normally replace it with a state/territory will. If you are leaving assets in Singapore, you should check if Singapore will accept an Australian will for probate. If so, you should not normally need to keep a parallel will in Singapore.
Jun 9th 2013, 4:50 am
#19
Forum Regular
Joined: Aug 2008
Posts: 244
Re: Joint bank account instead of will?
My parents had a joint account where either could sign. When Dad died, Mum went to the bank with his Death Cert and had the account name changed to just her name. She didn't have to do anything else. She was his sole beneficiary in his Will anyway, but it meant that she still had access to money with no issues. They were advised to do this by the solicitor who drew up their wills. This was in 2008 in WA.
