Powers of attorney and joint deposit accounts are great tools to help you plan for future unexpected events, but they are very different. Learn more about what they are and how they work.
This information doesn’t apply to business accounts.
What is a power of attorney?
A power of attorney (or POA) is a legal document that you sign to give the authority to one or more people to manage your money and property on your behalf. The person you give this authority to is called the “attorney”, but it doesn’t have to be a lawyer.
You can limit the powers you give to your attorney in your POA.
Even if you give power of attorney to someone, you’re still the owner of the money in your account. You can continue to make decisions about your finances and transact on your accounts as long as you are mentally capable.
Generally, a POA ends if you become mentally incapable of managing your affairs. In some jurisdictions, you can grant a POA that will continue to apply after you become mentally incapable.
The rules governing POAs are different from one province to another. If you’d like more information, you can refer to the resources included at the end of this document and should speak to a legal professional in your jurisdiction.
What is a joint account?
A joint account is a bank account owned by two or more people. Each of you can make withdrawals and payments from the account without consent from the other account holders, unless you tell us in writing that all account holders must give instructions together.
Joint account holders share equal ownership rights to the account. You also share responsibility for all the transactions and claims made on the account. For example:
- If there is an overdraft on the joint account, all account holders are responsible for repaying the debt, no matter who received the money.
- If the joint account holder owes a debt and a creditor makes a claim against the joint account, funds that you deposited could be claimed by the creditor.
| Attributes | Power of Attorney (POA) | Joint Account |
|---|---|---|
Access to the account |
Once the POA is added to your account, your attorney can access and transact on your account. |
All account holders have the right to access the account without the consent of the other joint account holder, unless you tell us in writing that all the account holders must give instructions together to debit or close the account. |
Ownership
|
You remain the sole owner of the money in the account. The attorney doesn’t own the money in your account.
|
Each account holder has equal ownership over the money in the account. |
Incapacity or death |
The powers given to your attorney will end if you become mentally incapable of managing your affairs– unless you’ve given a POA that will continue even if you become mentally incapable. |
If your HSBC account is outside of Quebec:
|
Changing or ending the arrangement |
You can change or end your POA at any time, as long as you are mentally capable. |
Any of the account holders can close the account – unless you tell us in writing that all account holders must give instructions together. |
| Attributes |
Access to the account |
|---|---|
| Power of Attorney (POA) |
Once the POA is added to your account, your attorney can access and transact on your account. |
| Joint Account |
All account holders have the right to access the account without the consent of the other joint account holder, unless you tell us in writing that all the account holders must give instructions together to debit or close the account. |
| Attributes |
Ownership
|
| Power of Attorney (POA) |
You remain the sole owner of the money in the account. The attorney doesn’t own the money in your account.
|
| Joint Account |
Each account holder has equal ownership over the money in the account. |
| Attributes |
Incapacity or death |
| Power of Attorney (POA) |
The powers given to your attorney will end if you become mentally incapable of managing your affairs– unless you’ve given a POA that will continue even if you become mentally incapable. |
| Joint Account |
If your HSBC account is outside of Quebec:
|
| Attributes |
Changing or ending the arrangement |
| Power of Attorney (POA) |
You can change or end your POA at any time, as long as you are mentally capable. |
| Joint Account |
Any of the account holders can close the account – unless you tell us in writing that all account holders must give instructions together. |
Making a decision that suits your needs
Before opening a joint account or adding a POA on your accounts, you should make sure you understand and consider all the risks and advantages.
Powers of Attorney
Why give a POA
There are many reasons why you may consider granting a POA. For example, health conditions, mobility issues or a busy schedule can make it difficult for you to manage your banking on your own.
Some of the risks associated with POAs
Your attorney can access your accounts without you knowing. They may use your money in a way you don’t agree with, or make decisions that are not in your best interests.
You can limit the powers of your attorney or appoint two or more attorneys to act together in order to reduce that risk. On the other hand, too much restriction may make it difficult for your attorney to do tasks on your behalf.
How to choose your attorney
Consider if the person you want to name as your attorney is:
- Honest and reliable: Has this person always been honest and open with you? Have you been able to rely on this person in the past on important decisions or tasks? Some personal issues may prevent or affect a person’s ability to manage your money properly, or to act in your best interest.
- Experienced: Is this person good at handling finances and understands the responsibilities of being your attorney?
- Available: How easy will it be for you to contact your attorney, when necessary? Does this person have time to manage your finances? The tasks your attorney needs to do on your behalf (and how often they need to do them) may influence your choice.
- Willing to act for you: The person can refuse to act as your attorney, so it is important to ask the person first. Also, consider appointing a substitute attorney in case the first attorney can no longer act for you.
- Qualified: Make sure this person meets all applicable legal requirements in the province or territory where you live (for example, the minimum legal age requirement).
How to appoint an attorney
You need to sign a POA document that accurately states the powers you want to give to your attorney.
HSBC has POA forms available for operating your HSBC accounts; you don’t have to use our forms though. You can also present a POA from other sources, including POAs prepared by legal professionals.
An HSBC POA form may impact arrangements set out in any existing POAs you may have. Therefore, before signing an HSBC POA form, you may want to obtain advice from a legal professional to identify potential conflicts between any existing POAs and the HSBC POA form.
How to add an attorney to your accounts
To review the request, we need to:
- collect information about your attorney
- see proper identification documents of your attorney
- receive the original or a certified true copy of the POA.
We may need to see more documents or get more information depending on your situation.
What if we need time to review your POA or your attorney’s instructions
If we need time to review your POA or your attorney’s instructions, we’ll let you or your attorney know and provide a general timeline (unless the review is related to financial abuse or illegal activity).
At times, we may decide not to accept your POA or to act on your attorney’s instructions. In those cases, we’ll let you know what options you have to resolve this.
For details on HSBC’s dispute resolution process, you can find our Resolving Your Complaints brochure at hsbc.ca/complaints or at a branch.
Changing or ending your POA
You can change or end your POA at any time, as long as you are mentally capable. Please let us know if you want to cancel your POA.
If you have any issues or concerns with instructions given on your account on your behalf, talk to us or visit a branch.
Joint Accounts
Why open a joint account
A common reason for opening a joint account is to pay shared expenses, like household bills.
Some of the risks associated with joint accounts
Before opening a joint account, consider the following risks:
- Control over the account
Unless you tell us otherwise in writing, any joint account holder can access the money in the account at any time without the permission of the other account holders, regardless of who deposited the money in the first place.
- Accountability
It’s difficult to hold a joint account holder accountable for taking money they weren’t supposed to take. You may have to go to court to challenge it, which can be expensive and stressful, and it may take a long time to resolve. - Legal disputes and financial difficulties
Money in the joint account may be affected by a legal dispute or judgment against a joint account holder or insolvency proceedings, regardless of who deposited money into the account.
Additional questions
If you’re not sure if a POA or a joint account is right for you, you should have a look at the resources linked below and speak to a legal professional in your jurisdiction. HSBC cannot provide legal advice.
If you have any questions about adding or managing a POA on your account or opening a joint account, contact or visit one of our branches (find one at hsbc.ca/findabranch). You can book an appointment by chatting with us online at hsbc.ca, or by calling Telephone Banking at 1-888-310-HSBC (4722).
More resources
Canadian Bankers Association – www.cba.ca
Search for “Commitment on Powers of Attorney and Joint Deposit Accounts”