Taking of Your Financial Future: Partnering with Accounting Firms to Maximise Value What to consider when setting up a joint bank account

CAREFUL consideration should always be given to setting up a joint account, and it is essential that all parties are very clear on how and for whom the funds are to be used and what should happen any remaining funds when one of the parties passes on.

SURVIVORSHIP

Where a bank account is in joint names, the parties provided equally the funds and can withdraw without limit from the account, it passes to the survivor on passing of one of them.

Convenience

Older people are often encouraged to add the name of a family member or carer to their bank account ‘for the convenience’ of the older person, for example, when being admitted to hospital or long-term care, or they may simply be physically infirm and unable to access the funds directly, to pay their bills and expenses.

If an account is in joint names for convenience, any withdrawals should be for the care and maintenance of the original account owner only. If they become mentally incapable of managing their affairs, then operation of the account must stop, and thereafter it can only be operated by an Attorney under a registered Enduring Power of Attorney or by Court Order.

original account owner’s intentions, then no other evidence can be used to override this. If the documentation doesn’t disclose any intention, then clear evidence proving a gift is required.

Presumptions

Also, the family relationship between the account holders may give rise to a presumption that the funds are to pass to the survivor of them. Particularly, this presumption applies to a joint account of a husband and wife so that the account passes to his wife, and to a joint account of father and child, so that the account passes to his child. However, this presumption does not apply in the case of transfer of a joint account from wife to husband or from mother to child, between other relations or third parties! In such circumstances the onus is on the survivor to prove that there was an intention that the funds were to pass to them.

Recommendation

IN TODAY’S ever-changing financial landscape, it is crucial for both business owners and individuals to actively take ownership of their financial future. In all aspects of this journey it is important to partner with the right professionals who can advise you along the way. In this article, as it is an area I am well acquainted with, I will focus on a the advantages of partnering with a reputable accounting firm.

Maximizing Financial Position Through Expert Guidance

Accounting firms play a pivotal role in helping optimise the financial position of both business owners and individuals. With their extensive knowledge and expertise, these firms provide a wide range of services tailored to meet specific needs and goals.

One area where accounting firms excel is tax planning, particularly for business owners who are approaching retirement. These professionals can assist in maximising retirement relief, entrepreneur relief, and participation relief. By leveraging their understanding of the tax landscape, accounting experts navigate complex regulations, identify opportunities to minimise tax liabilities, and ensure individuals reap the full benefits of available reliefs.

Furthermore, accounting firms offer valuable support in tax planning related to gifts and inheritances. By closely collaborating with individuals before drafting a will, these firms help beneficiaries maximise the tax reliefs available to them. Through meticulous analysis and strategic planning, accounting professionals ensure assets are distributed efficiently and implement tax-efficient solutions to safeguard beneficiaries’ financial well-being.

Moreover, accounting firms provide vital assistance to business owners in preparing for succession planning or the sale of their business. They evaluate the current value of the business, identify areas for improvement, and implement strategies to enhance marketability. Through comprehensive financial analysis and guidance, these firms enable business owners to maximise the value of their business and achieve their desired outcomes.

The Value of Professional Expertise

When partnering with accounting firms, it is imperative to focus on the value they provide rather than fixating solely on the cost of their services. Making errors in any of the abovementioned matters can prove significantly costly for individuals and businesses; significantly more costly than any fee to advise you on the matter.

Professional expertise is an investment in securing your financial future. By engaging with experienced professionals, individuals gain access to specialised knowledge and a deep understanding of complex financial matters. Accounting firms bring forth a range of skills, including tax planning, financial analysis, and strategic guidance, all of which contribute to maximising financial position and securing long-term prosperity.

Furthermore, partnering with reputable accounting firms fosters a collaborative relationship built on trust and mutual goals. These firms act as trusted advisors, working closely with individuals to develop tailored strategies that align with their unique circumstances and objectives. Through open communication and a shared commitment to financial success, individuals can forge a strong partnership that drives them towards achieving their financial goals.

Taking the First Step

I have written this article today for the Clare Echo because all too often people approach us for advice on matters when it is too late to plan an event. If you have major events in your future horizon I urge you to take the time to meet with a reputable accountant or tax advisor, walk through the proposed transaction and get advice. Where you are a business owner, to take ownership of your financial future, it is essential to partner with a reputable and capable accounting firm. By adopting this approach, individuals gain access to expert guidance, strategic planning, and specialised knowledge, empowering them to make informed decisions and maximise their financial position.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is always recommended to consult with a qualified accounting professional for personalised guidance.

Michael Queally AMQ Accountants & Auditors

On the death of the original account owner, the remaining funds pass to their estate and not to the surviving joint account holder, unless an intention to make a gift can be proved. The first place to look for such intention is any documentation held by the financial institution. If these documents disclose the

In conclusion, preferably a written agreement should be entered into between joint account holders confirming the reasons for putting the account in joint names, the use of and passing on of the account funds, so as to avoid any uncertainties or misunderstandings. This article does not constitute legal advice and where an opinion is expressed, it is the personal opinion of the author only and not of the firm or the paper. For further information, contact Cashin Clancy Solicitors LLP, 3 Francis Street, Ennis, Co. Clare. Tel: 065 6840060. Email: enquires@cashinclancy.ie