Whether a loved one passes away with or without warning, it always leaves people in shock during the aftermath while trying to figure out their banking and financial ties. There are different regulations set by the government and financial institutions on methods of procedure.
For example, how to proceed when the deceased has left a will and cases in which there was no will left. In the case that the deceased left no will behind, the deceased’s property and valuables will be distributed according to their wishes.
However, in the off chance there is no will, assets will be split up depending on your location in Canada.
What Will Happen to My Account After I Pass?
When a person passes away, their bank accounts are closed. The executor of the estate will be responsible for splitting up any properties or assets according to your will, which is a legally binding document that entails who will acquire your assets following your death.
In the case you did not leave a will behind, the estate’s administrator will distribute all assets according to the provincial or territorial succession laws from where the deceased resided.
Most commonly, the majority or even the entirety of all the assets and cash will go to their spouse, and the remainder will be distributed to the couple’s offspring.
For any leftover credit card debt or personal loan debt that remains, it will be paid out from the deceased’s bank accounts before the account administrator manages and distributes any of the deceased’s assets.
Will My Spouse or Children Take Over My Bank Account After I Pass?
If the deceased had a joint-account with someone else with a relative for example, the account is permitted to remain open and can be accessed by only the surviving account holder.
In most cases, that policy is not upheld if the account is jointly-shared by an adult child when their guardian or parent passes away. Legislation generally states that the child will not have access to a guardian or parent’s bank account unless the “right of survivorship” was outlined previously by the parent or guardian in writing.
This law does not apply in the province of Quebec however. Some required documents required by financial institutions are a death certificate, a copy of the will if there is one, and proof of executor status.
How Do I Claim a Deceased Person’s Bank Account?
There are a few simple steps to follow to claim a deceased person’s bank account if you are the payee on death beneficiary:
- Visit or call the bank to start the claims process.
- Ensure you have your government-issued ID and a copy of the death certificate on hand. You will be asked to either show these at the bank or submit digital versions.
- Complete and submit the bank’s paperwork, which was pre-signed by the deceased owner and outlines that you shall inherit the account.
- Withdraw the funds or transfer the money into a new account either at a different bank or the same one.
