In Quebec, joint bank accounts are common among spouses, family members, or business partners to facilitate shared financial responsibilities. However, when one of the account holders passes away, the legal treatment of the funds within the account can raise complex questions. Unlike some other jurisdictions, Quebec operates under a civil law system, and the rules surrounding joint accounts may vary depending on the account’s specific terms and the relationship between the account holders.
Joint bank account in Quebec
In some provinces, where cases where the account is held in true joint ownership with the right of survivorship, the surviving account holder may have immediate access to the funds without the need for probate. However, this is not automatic under Quebec law. Unless explicitly stated in the bank agreement, joint accounts are presumed to belong equally to both parties, and the deceased’s share is considered part of their estate. This means the deceased’s portion may be subject to distribution according to their will or, in the absence of a will, the rules of intestate succession under the Civil Code of Quebec.
Issues can arise when there is no clarity in the account agreement or if disputes occur among the heirs. Beneficiaries under the deceased’s Will may claim a share of the funds, arguing that the account was not meant to bypass the estate. Conversely, the surviving account holder may assert that the account’s nature intended full survivorship rights. In such cases, courts often look to the intent of the parties and the specific terms of the agreement to resolve disputes.
To avoid complications, it is advisable to clearly outline the ownership and succession terms of joint accounts when opening them. Account holders should also review their estate plans and ensure that their intentions are reflected in their Wills and other legal documents. Consulting a notary or a lawyer in Quebec can help navigate these issues and prevent disputes after a death.
Allen Madelin Avocats offer consultations and representation services in Quebec and abroad. For more information, please contact us by telephone: 1 514 904 4017 or by e-mail: [email protected].
