Hugely OT: Canadian Legal Account Types
(By all means point me to someplace here or SI if there are better suited forums).
This is leading up to a review of a number of brokerages I have queried based on some responses here - with some interesting twists.
Currently I have two joint accounts with TD. (Gov'ment cheese wants to know the "SIN" of the primary). Basically here is the setup:
Joint #1
Myself - (prim) MY SIN
My Wife -(sec)
My wife - (prim) HER SIN
Myself - (sec)
Before I use to have a single joint and separated (within Quicken - blah) all transactions between us. Except things like interest were mostly attributed to me due to the mere impossibility of splitting that. Plus we had a money market - it was split but hell of a lot of work.
So yes I have added commish costs but in the end, the ease of doing the taxes is worth the price - a lot cleaner. Lately the number of transaction has just exponentially increased - so at least I don't have to worry about all the numbers.
Here is the question:
What is the fundamental difference between a JOINT account and an INDIVIDUAL account with full POWER OF ATTORNEY?
My understanding is that I can give my wife a PoA and say "allowed to withdrawl money" or "not allowed to withdrawl money" - basically give her free reins to do anything.
To me the main difference I thought was during PROBATE period (in case of death). With a JOINT, the account is open and unaffected but any personal accounts - regardless of PoA would be frozen during probate.
Said in another way, are both accounts treated equally during a period where dealth of one has occurred, (able to trade; able to move out cash etc), or are there major or subtle differences between the two?
[EDIT: Death is the only case I can think of; but I suppose one could be arrested or "other"... "force majeure Jerry..."]
My gut says there are differences and Joint was the best method to go with.
Anybody versed in this subject? Have I made radically incorrect statements?
Most appreciated.
SoB
"When you have to shoot, shoot. Don't talk."
Tuco (The Good, the Bad and the Ugly)
"An umbrella with holes is better than no umbrella at all."
Dr. Alexander Elder on using stops.
