Survivorship clause, so widely used in common law provinces of Canada, is not valid in Quebec. Particularly, when it comes to joint accounts.
When Your Joint Account Is Frozen
Let’s say, an old father and his daughter had a joint account open in one of the Quebec branches of a prominent bank. What happens when the father dies (with or without a Will)? Routinely, the bank will freeze the account, so that the daughter will loose access to it (with some exceptions, but this does not change the gist). This happens because in Quebec only a Will (if exists) or the legal devolution of property (if there is no Will) govern the partition and distribution of assets. This rules makes invalid any other dispositions (verbal, written, informal of formal) regarding the property made by a person before his death. (Again there is a certain exception with respect to insurance policies, where different rules apply, but that’s it). For this reason, a survivorship clause in a bank contract is considered invalid.
So, what the daughter in our example should do to get some money from the account? By default, the joint property is considered to be held in equal shares, meaning that 50 percent of the money will go to the Succession (Estate) of her late father, and the other half – to her. But to get to this partition in practice, the daughter will have to cooperate with the liquidator (executor) of the Estate, because the Bank will need the liquidator’s instructions to deliver the money.
If there is no conflict regarding the Estate, if the Will is clear and the liquidator is nominated and registered without any problem, then the delay seems to be not so important. But if there is no Will, yet there are many potential heirs (which makes questionable a smooth nomination of a liquidator), or if the Will (and the liquidator’s nomination) is contested, or if the Will is not notarial, needs probation and again contested, the daughter in our example might face serious time period without access to the money in the account.
In most complicated situations consulting a lawyer and sending a letter of formal notice to the liquidator, to the heirs or to the bank might be a necessary step.
How can we help
We are a law firm with concentrated experience in succession law. So we face the question regarding liquidation of Successions on a daily basis.
Feel free to contact us with questions about Wills or any other questions with respect to successions: 514-904-4017, email: [email protected].
This blog post contains only general information, please don’t take it for a legal advice. For all legal questions regarding your particular situation do not hesitate to consult your lawyer.
