Monday, October 12, 2009

Joint Tenancy (Malaysia) for your information

Dear friends,

I would like to share with you one recent article which i read and shocked me a lot...

It happens in west Malaysia , husband and wife and 1 son. Husband passed away due to accident, the husband had a RM50k joint saving accountwith wife, what happen is the wife / like most people think, when husband passed away, she would get the money automatically since it isjoint account.

But to her surprise, She could not withdraw even a single cent!!

Joint saving account is meant for convenience when spouse need it the most, but most people always assume once the otherholder dies, another half will get the money automatically which is very wrong.

I would like to share my opinion with all of you, you may take it as educational thoughts or as awareness. When one person dies,the other joint holder of the savings account will get the money automatically only if that particular bank practise 'JOINT TENANCY' -this terms means in the event one of the party dies, the other joint account holder gets the money automatically.

But unfortunately, not all the banks practice JOINT TENANCY. Some foreign banks practise but most local banks don’t practice.

If you want to be sure, just ask your bank if their policy on joint account is based on JOINT TENANCY, if it is yes, get a written confirmation.

Can u all imagine, when husband pass away, the wife is already suffering from emotional loss,
and not to mention, additional problem of having 'NO MONEY' although it is in join account.

Knowledge enlightens.

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