Individual vs. Joint Investment Accounts
Non-registered accounts held individually can lead to frozen funds and probate fees, causing financial strain on families.
Losing a spouse is devastating, and losing access to the family's savings can be heartbreaking. For example, a $400,000 investment account can be frozen after a partner passes away, resulting in months of delays while the courts approve the will, and thousands of dollars in probate fees.
The issue often arises from non-registered investment accounts held in only one spouse's name. This can lead to frozen funds and significant probate fees.
Months drag on while the courts approve the will, thousands in probate fees vanish into government coffers, and you’re left scrambling to pay the bills.
Joint accounts can protect a family's finances in such situations. By understanding the implications of individual and joint investment accounts, couples can make informed decisions about their financial management.
Author's summary: Joint accounts protect family finances.