Power of Attorney vs. Joint Accounts: What You Need to Know
March 11, 2025
Managing money isn’t just about budgeting and paying bills—it’s also about making sure the right people have access when you need them to. Whether you’re planning for the future or assisting a loved one, you may be considering a Power of Attorney (POA) or a Joint Account. While both provide financial access, they serve very different purposes. Let’s break it down so you can make the best choice for your situation.
What is a Power of Attorney (POA) in Ontario?
A Power of Attorney is a legal document that allows someone you trust (the attorney) to act on your behalf (the grantor) when it comes to financial matters. Depending on the type of POA, your attorney can help with tasks like paying bills, managing investments, and making banking transactions. However, they do not become an owner of your assets.
Types of POAs in Ontario:
General POA – Gives broad financial authority but ends if the grantor becomes mentally incapacitated.
Continuing (Enduring) POA – Remains valid even if the grantor becomes mentally incapacitated.
Limited POA – Covers specific tasks or time periods.
Springing POA – Takes effect only when certain conditions are met (e.g., a medical diagnosis of incapacity).
What is a Joint Account?
A Joint Account is a bank account owned by two or more people. In Ontario, most joint accounts come with rights of survivorship, meaning that if one account holder passes away, the surviving holder(s) automatically take full ownership of the funds. Unlike a POA, all joint account holders have equal access and control over the money in the account at all times.
POA vs. Joint Account: Key Differences
Feature
Power of Attorney (POA)
Joint Account
Ownership
Grantor retains full ownership
Both parties share ownership
Decision-Making
Attorney acts on behalf of grantor
Each account holder acts independently
Survivorship
Ends upon grantor’s death
Surviving account holder retains full ownership of funds
Control Over Assets
Grantor can limit attorney’s powers
All account holders have equal access
Financial Risk
Attorney has a legal duty to act in grantor’s best interest
Each holder can withdraw/spend without consent
Legal Termination
Ends when revoked, upon death, or if not continuing
Ends only if the account is closed or modified
Which One Should You Choose?
Go with a POA if:
You need someone to manage your finances but don’t want them to own your assets.
You want control over what they can and can’t do with your money.
You’re planning for a time when you might be unable to manage your finances yourself.
Consider a Joint Account if:
You want shared financial access with a spouse, partner, or family member.
You’re comfortable with the co-owner using the funds freely.
You want to ensure seamless access to funds after one holder passes away.
When to Become a POA or Joint Account Holder
You might need a POA when:
A loved one requires financial assistance due to illness, aging, or incapacity.
You want a backup plan for managing your finances if you become unable to do so.
You want financial control without giving away ownership.
A Joint Account makes sense when:
You share household expenses with a partner.
You want easy access to joint savings or emergency funds.
You need a practical way to share financial responsibilities with a family member.
When Does Access End?
For a POA:
When the grantor revokes the POA in writing.
Upon the grantor’s death (POAs do not survive death in Ontario).
If it was a limited POA, access ends once the task is completed.
If it was not a Continuing POA, it ceases when the grantor becomes mentally incapacitated.
For a Joint Account Holder:
Access remains unless the account is closed or ownership is changed.
If an account holder passes away, the surviving holder(s) take full control unless otherwise specified in estate planning.
Choosing between a Power of Attorney and a Joint Account depends on your financial goals and comfort level with access and control. If you need assistance managing money but want to retain ownership, a POA is the way to go. If you want shared access and control, a Joint Account may be more suitable.
Before making a decision, consider speaking with a legal or financial advisor in Ontario to ensure you choose the best option for your specific situation.
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A troubling new theft scheme is making the rounds. Criminals are watching unsuspecting victims as they enter their PINs at ATMs or while making in-store purchases. Once the thief has seen the PIN, they execute a plan to deceive you to allow them access to the card in some way.
Here’s how the scheme works:
Surveillance: The thieves position themselves in a way that allows them to view your PIN entry, either at an ATM or while making a purchase.
Steal the Card: They then either take the card from your purse/wallet or pickpocket it when you’re distracted.
Use the Card & PIN: With both the card and the PIN in hand, they can withdraw money or make purchases without any suspicion.
How to protect yourself:
Shield your PIN – Always cover the keypad when entering your PIN at an ATM or point of sale.
Stay aware of your surroundings – Look around to ensure no one is too close when you’re using your card.
Use FLASH/mobile payments: Whenever possible, use FLASH (Tap) or mobile wallets like Apple Pay or Google Pay, which don’t require entering a PIN.
Monitor your accounts: Keep an eye on your bank statements and transaction history for any unauthorized activity.
Alert your bank immediately – If you believe your card or PIN has been compromised, you can report your card as lost/stolen by calling your financial institution immediately.
Stay safe out there and be vigilant when using your debit or credit cards!
YNCU members, if you know, or think your card or pin has been compromised, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501. Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!
THE CRUCIAL ROLE OF REGULARLY UPDATING INFORMATION
January 22, 2025
In the fast-paced world of modern finance, where technological advancements and changing circumstances are constant, maintaining up-to-date information with your credit union is not just a formality but a crucial part of responsible financial management.
At YNCU, protecting our members is our top priority. To enhance security and reduce the risk of fraud, we will regularly ask members to update and verify their personal information. Keeping your details current helps us safeguard your accounts and provide secure, reliable service.
Here’s why regular updates with your financial institution are of paramount importance:
Security and Fraud Prevention
Keeping your contact details, such as phone numbers and email addresses, current with your credit union ensures that we can promptly reach you in case of any suspicious activity on your accounts. Timely communication is vital for preventing and addressing potential fraud, identity theft, or unauthorized transactions.
Effective Communication
Financial institutions often rely on electronic communication for various purposes, including account statements, transaction alerts, and important updates. If your contact information is outdated you may miss critical messages, leading to potential misunderstandings, missed payments, or overlooked opportunities.
Account Verification and Access
Regularly updating your personal information helps streamline the account verification process. In cases where you need assistance or access to your account, accurate details such as address, phone number, occupation/employer, and email become essential. This ensures a smoother experience when interacting with your credit union.
Compliance with Regulations
Financial institutions are obligated to comply with regulatory requirements, including customer identification and verification procedures. Keeping your information current helps your credit union fulfill these legal obligations, ensuring a transparent and accountable financial system.
Efficient Service Delivery
Updated information enables financial institutions to provide better and more efficient services. Whether it’s processing loan applications, issuing new cards, or resolving account-related issues, having accurate details ensures a quicker and more precise response from your credit union.
Emergency Situations
During unforeseen events, such as natural disasters or emergencies, banks may need to reach out to their customers quickly. Updated contact information is crucial in such scenarios to convey important instructions, offer support, or provide information about service disruptions.
Changes in Personal Circumstances
Life is dynamic and circumstances change. If you move to a new address, change your phone number, change jobs, or update your email, informing your bank ensures that your financial records align with your current situation, preventing potential complications.
Access to Modern Banking Features
Banks frequently introduce new technologies and services to improve customer experience. Updating your information ensures you have access to the latest features, whether it’s mobile banking, online transactions, or digital security enhancements.
Information that should be regularly updated include the following:
Name change
Address
Phone Number(s) – think of both landline and mobile
Email address (es)
Valid Photo Government Issued ID and expiration date
Occupation and Employer
In conclusion, maintaining accurate and up-to-date information with your financial institution is not just a matter of compliance but a proactive step towards securing your financial well-being. It contributes to a smoother, more secure, and efficient banking experience, ultimately empowering you to manage your finances responsibly in an ever-evolving financial landscape. Regularly reviewing and updating your information is a small yet impactful way to stay in control of your financial situation and financial safety.
YNCU members, if you know, or think you are a victim of a scam, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.
Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!
As the hustle and bustle of the holiday season arrives, many of our members will experience a short-term change in their spending habits. Many of us are spending more at places where we may not usually shop, and we may not be as diligent with our finances as we are the rest of the year due to the business of the season. We are also susceptible to more scams, like those listed below.
Online Shopping is where we are at the highest risk because this is often such a big part of our holiday spending. The most common things we suggest watching out for are:
Fake websites
Fake product listings
Fake shipping notifications
Parcel redelivery or delivery delay scams
Fake event tickets being sold
Charity Scams also ramp up this time of the year as the giving spirit is upon us. These may look like:
Fake charities
Fake donation requests
Crowdfunding scams
Confidence Scams work by exploiting your social or parasocial (“one-sided relationships, where one person extends emotional energy, interest and time, and the other party, the persona, is completely unaware of the other’s existence.”) relationships to trick you into giving up information or money. Keep an eye out for:
Fake contests and giveaways
Impersonation scams: family/friends or celebrities
Phishing for gift cards
Fake travel or timeshare scams
Romance Scams also spike around the holidays, as they take advantage of the loneliness some might experience during the holidays.
Skimming is something to always be aware of. We urge you to check that there is not anything added onto the chip reader of a machine you are using. They can be added quickly, and we are more likely to miss them as we are rushing to get the shopping done.
How to Protect Yourself:
Verify websites: Always double-check URLs and look for secure payment methods when shopping online (e.g., secure payments via PayPal or credit card).
Navigate to websites independently: Rather than clicking a link, we suggest navigating to the website by typing in the website address to avoid malicious links.
Watch out for suspicious emails: Be cautious of unsolicited emails, especially those claiming to be from well-known retailers, delivery services, or charities.
Do not share personal information: Never share sensitive personal information (like gift card details or bank account information) unless you are sure the request is legitimate.
Use credit cards: For online purchases, use credit cards with fraud protection rather than debit cards, which might be harder to recover funds from.
Research charities: Before donating, research organizations to ensure they are legitimate. Websites like this one provided by the Canadian Government, can help verify nonprofits.
Avoid high-pressure requests: Scammers often create a sense of urgency, but legitimate businesses and family members will not demand immediate financial help, especially through gift cards.
Don’t let these fraudsters turn your festive season into a finance nightmare. Stay vigilant!
YNCU members, if you know, or think you are a victim of a scam, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.
Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!
Before responding to a potential scam, it’s crucial to consider several factors to protect yourself from falling victim to fraudulent schemes. Here are some things to think about:
1. Sender’s Identity– Consider the identity of the sender. Is it someone you know and trust, or is it an unknown entity? Scammers often impersonate trusted organizations or individuals to deceive victims. Look for subtle changes. Attackers often make very small changes to an email address that might be easy to miss at first glance. A common tactic is replacing letters with numbers or characters that look similar, like replacing “l” with “1” or “o” with “0”. They might also use a domain that’s close but not identical, like “@googlemail.com” instead of “@gmail.com” or something like “@paypal-support.com” instead of “@paypal.com”.
2. Urgency– Scammers often create a sense of urgency to pressure victims into making hasty decisions. Take a moment to assess whether the request seems excessively urgent or if there’s a deadline imposed on you.
3. Do Not Engage– Refrain from engaging further with the sender if you suspect it’s a scam. Avoid responding to emails, clicking on links, or providing any personal information.
4. Request for Personal Information – Be wary of any requests for personal or sensitive information, such as passwords, social insurance numbers, or financial details. Legitimate organizations typically won’t ask for such information via unsolicited emails or messages.
5. Unsolicited Communications – If you receive unsolicited communications, especially those related to financial matters or offers you didn’t sign up for, approach them with caution. Legitimate businesses usually don’t reach out randomly.
6. Verify the Source – Take steps to verify the authenticity of the sender or the organization contacting you. Check official websites, contact numbers, or customer service channels to confirm the authenticity of the communication.
7. Grammar and Spelling – Pay attention to the language used in the communication as well as the spelling. Scam emails or messages often contain grammatical errors, spelling mistakes, or awkward phrasing.
8. Links & Attachments – Avoid clicking on suspicious links or downloading attachments from unknown sources. These could be in emails or phone text messages. These could contain malware or lead to phishing websites designed to steal your information.
9. Educate Yourself – Familiarize yourself with common scam tactics and stay informed about the latest scams circulating online. This knowledge will help you recognize and avoid similar threats in the future.
10. Trust Your Instincts – If something feels off, too risky, or too good to be true, trust your instincts and err on the side of caution. It’s better to be safe than sorry when dealing with potential scams.
By considering these factors and exercising vigilance, you can better protect yourself from falling victim to scams and fraudulent schemes. When in doubt, it’s always wise to consult with trusted friends, family members, or financial advisors before taking any action.
YNCU members, if you know, or think you are a victim of a scam, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.
Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!
How to Spot a Fraudulent Cheque: Key Signs and Risks
October 3, 2024
Fraudulent cheques can cause significant financial loss and legal trouble. With the rise of mobile banking, cheque fraud schemes have evolved, and it’s important to know how to identify a fake cheque.
Here are some key signs to look for and risks to be aware of:
The Form: “Mobile Deposit Only” is Not a Valid Cheque
One of the first red flags of a fraudulent cheque is the phrase “Mobile Deposit Only” or any similar wording. This form is not considered a valid cheque by financial institutions. The phrase suggests that the cheque is only intended for mobile deposit, but legitimate cheques should not have such restrictions printed on them. If you come across a cheque with this phrase, it is best to treat it with suspicion.
What to Look for on a Cheque
To identify a fraudulent cheque, carefully examine these key elements:
Check the Details: Ensure the cheque has all the necessary details, including the payer’s name, the bank’s name, the cheque number, and a valid date. Missing or incomplete information can be a sign of fraud.
Check for Alterations: Look for signs of tampering, such as erasures, corrections, or overwriting. Any irregularities could mean the cheque has been altered.
Pay Attention to Printing Quality: A legitimate cheque usually has high-quality printing with clear, consistent fonts. Fuzzy or distorted printing can indicate that a cheque has been forged or created using low-quality printing methods.
Verify the Bank Details: Ensure that the cheque contains the correct bank name, address, and logo. Fraudsters often use incorrect or outdated information to make a cheque appear legitimate.
Inspect the MICR Line: The MICR (Magnetic Ink Character Recognition) line at the bottom of the cheque contains the routing number, account number, and cheque number. Check for irregularities in font size or spacing. Real cheques are printed with magnetic ink; counterfeit cheques often use standard ink.
Additional Risks Involved in Cheque Fraud
There are several risks associated with cheque fraud, including:
Financial Loss: If a fraudulent cheque is deposited, and it bounces, you could be held responsible for the amount, potentially resulting in significant financial loss.
Legal Consequences: Depositing a fraudulent cheque, even unknowingly, can lead to legal complications. A financial institution could report suspicious transactions to authorities, and the depositor could face investigation.
Identity Theft: Fraudulent cheques are often part of broader schemes, like identity theft. If you provide personal information to a fraudster, it can be used for further fraudulent activities.
Being vigilant and knowing the warning signs of a fraudulent cheque can help protect you from financial loss and legal risks. Always examine cheques carefully, especially if they contain unusual phrases like “Mobile Deposit Only.” When in doubt, contact your financial institution to verify the cheque’s authenticity before taking any action.
YNCU members, if you know, or think you are in possession of a fraudulent cheque, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.
Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!
