No Socialism

In Canada, if people have a joint bank account and one of them dies, the bank account gets frozen for months. You need to get mountains of paperwork to get it unfrozen. In the meantime, you don’t have access to your own money.

Why? Because imagine how convenient it is for the banks to have control over a multitude of accounts where they can invest the money unmolested and know that the owners won’t try to withdraw anything for up to 6 months.

People who say that there’s socialism in Canada are either clueless or use the word socialism to mean “something icky.”

15 thoughts on “No Socialism

  1. That’s horrible! Seems like a good argument for making sure people know that they need to clean out the joint bank account before they call for the coroner…

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    1. Exactly. We were told by the owner of the funeral home that this is the first thing we need to do. Because people find themselves in a situation where they can’t pay the mortgage or any bills. It’s crazy.

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    2. “lean out the joint bank account”

      Once mumble-mumble years ago my family was in a similarish situation (not involving a bank account but a safety deposit box) a signature… somehow appeared and the contents were able to be removed in time.

      Liked by 1 person

  2. This is the case in the US, as well. You have to back-date checks sometimes to cover funeral costs.

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      1. It can be important, though. If nobody’s name but the decedent’s is on the account, sometimes the money goes to the state (if there are no children and no will), or it’s impossible to pay funeral costs from the estate until probate ends. My uncle had to back-date a check to pay for my grandfather’s funeral because my grandfather was the one who set aside money for his funeral so my dad and uncles didn’t have to. The rule is you always want to back-date your transactions from estate accounts and then inform the bank afterwards.

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    1. Huh? No, joint accounts generally have automatic right of survivorship. If one person dies, the other can keep right on using the account normally. It’s if there’s no other name on the account that it has to go to probate.

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      1. It can go to probate regardless. This is what happened to my grandfather’s estate — I don’t know if it’s because my uncle was executor and joint account-holder, but until it passed through probate he wasn’t allowed to use the account. Now granted, it only took about a month and a half to pass through probate, but without back-dating the checks we wouldn’t have had the money for the funeral costs.

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        1. It’s probable that the account didn’t have automatic survivorship since it wasn’t an ordinary married couple’s account. The bank would not have set it up that way whenever the uncle was added if there were perhaps going to be other questions from heirs, etc about the remaining money (the account owner, in this case your grandfather, could have asked them to give right of survivorship and they would have done so, but wouldn’t have done so automatically). But normally nowadays the bank will set a couple’s joint accounts up with the automatic right of survivorship.
          Just didn’t want Clarissa to make a bunch of account changes based on something that can’t actually happen; more likely to cause problems is that any money in an account only in hers or her husband’s name can’t be used by the other during normal life and then would have to go to probate after the spouse’s death and could be subject to inheritance taxes instead of already officially belonging to the surviving spouse.

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    1. I am in Canada. I’m planning the funeral. I keep hoping the ear would get better but if it doesn’t, I’m going tomorrow. Lord have mercy on me and deliver me from the need to seek Canadian healthcare at this point.

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      1. God, I wish the damn border went back to normal. Then you could cross to go to a US hospital or urgent care if you wanted and return to Canada quickly.

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