Part 5 of SG Law Guru’s 7-Part Will Series
Joint bank accounts are commonly set up for convenience — between spouses, parent and child, or business partners.
However, when an account holder passes away, what was once a tool of convenience can quickly become one of the most misunderstood — and frequently disputed — assets in an estate.
Many surviving holders may assume:
“Since I am the surviving account holder, the money is automatically mine.”
In Singapore, the answer is rarely that straightforward — particularly where the estate becomes contested or family relationships are strained.
1. How Joint Accounts Work During Lifetime
Most joint accounts in Singapore are set up on a “joint-anyone” basis — meaning either party can operate the account independently, also commonly referred to as an “AND/OR” account.
Such account works well for:
- paying household expenses
- assisting elderly parents with banking
- managing shared finances.
However, access during lifetime is different from ownership after death.
2. The Legal Tension: Survivorship vs Intention
There are two key principles that often clash:
Right of Survivorship
Banks generally allow the surviving account holder to continue operating the account.
Beneficial Ownership (Resulting Trust Principle)
However, the law looks at intention — who actually owned the money?
If the surviving account holder did not contribute to the funds, and the account was opened purely for convenience, the court may treat the survivor as holding the money on trust for the deceased’s estate.
This is where disputes commonly arise.
3. Common Dispute Scenario
An elderly parent adds one child to a bank account to help manage bills.
After the parent passes away:
- the surviving child withdraws the balance.
- siblings question whether the money was meant as a gift.
- the executor may demand the funds be returned to the estate.
Without clear documentation of intention, family relationships can worsen quickly.
4. Why Joint Accounts can be Risky for Estate Planning
While some joint accounts are created purely for convenience, using them as shortcut for:
- avoiding probate;
- benefitting one child without clear documentation;
- ensuring fast access to cash.
This can create unintended legal consequences.
The court will examine:
- who funded the account
- how it was used
- if there is evidence of gifting intention
Silence often leads to conflict.
5. How to Reduce the Risk of Disputes
If you have joint accounts, consider the following:
✅ Clarify Intention in Writing
If the account is meant as a gift, record this clearly. If it is for convenience only, document this clearly as well.
✅ Avoid Using Joint Accounts as a Will Substitute
Estate distribution should be handled through:
- a properly drafted Will
- CPF nominations
- insurance nominations
- structured estate planning tools
✅ Keep Records of Contributions
Document who deposited funds and how withdrawals were used.
✅ Review Joint Accounts During Estate Planning
Joint accounts should be reviewed together with your Will — not separately.
Key Takeaway
Joint accounts are simple during life — but may be legally complex after death.
What feels like practical convenience today can become an evidence problem tomorrow.
Clarity, documentation, and coordinated estate planning can prevent unnecessary disputes and preserve family harmony.
Disclaimer: This article serves as general information and does not constitute legal advice. You should consult a qualified lawyer for advice tailored to your specific situation.
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