Taxes

Community Deposit Benefits Risks And Tips

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A joint deposit is used to build up assets together. It works in a similar way to the joint account. However, located on a deposit is usually higher than on assets accounts. In order to avoid ambiguity and unnecessary tax burdens, you should therefore pay attention to a few things and possibly also consider a written custody agreement between the partners.

What is a shared depot?

A joint custody account is a securities account with two owners. The most common form of a shared depot is the Oder depot. This means that – unless otherwise contractually stipulated – both owners are equally entitled to make decisions. Both can freely dispose of the securities contained in the custody account without consulting the second holder.

What are the advantages over individual deposits?

Open your custody account: To open a joint custody account with comdirect, simply fill out this application and submit it by post.

Joint depots have the advantage that both owners can step in for the other to make decisions. If two partners manage assets together anyway, a joint custody account is a logical step. However, caution is also advised in joint asset management if the partners do not exceed the tax allowances and at the same time want to be well positioned for inheritance.

How can I convert a single deposit into a joint deposit and vice versa?

The mere conversion of a custody account is a relatively straightforward process that you can easily handle at comdirect via the custody account exchange portal . The process can take about two weeks or up to six weeks if the depot is foreign. However, from a monetary point of view, the transition of securities accounts is more difficult. The transfer of a joint custody account into a single custody account can be counted as a gift to the holders of the single custody account from one holder to another. The transfer of an independent custody account to a joint custody account can, on the other hand, be treated as a half-gift to the new wife. When moving a deposit, you should keep this in mind, as otherwise the gift tax can easily become due.

A written deposit agreement to clarify the ownership situation

In principle, it is assumed with a joint custody account that the value of the custody account belongs to both owners in equal parts. This is how joint deposits are treated from the point of view of the tax office. However, this often becomes problematic when one of the owners dies and third parties are designated as heirs. Then the parties involved often argue about which owner brought which share into the joint deposit and who, accordingly, owns which share.

In order to avoid such disputes and to create tax clarity, the owners can agree on a written deposit agreement. This can be used to determine exactly which portion of the property belongs to whose property. However, this contract is concluded independently of the bank in question and is considered to be private individuals between the depository holders.

Such precautions are not necessary if you always make sure to pay equal parts into the deposit and only allow payments to be made to a joint account. So there is never a gift and the ownership situation remains clear.

The alternative: single custody account with power of attorney

As an alternative to a joint custody account, you can also use powers of attorney for your individual custody account. In the case of a depot power of attorney , ownership remains entirely with the depot holder. The authorized representative is only authorized to manage the depot on behalf of the owner. Under no circumstances is an authorized representative authorized to take possession of values ​​from the depot without consulting the owner. A depot power of attorney is sufficient to jointly manage a depot. However, a power of attorney is not an equal partnership and in the event of inheritance, a power of attorney does not entitle you to a share of the custody assets.

SEPARATION, DIVORCE OR DEATH: WHAT HAPPENS TO THE JOINT DEPOSIT?

If there is no written deposit agreement, then a deposit belongs equally to the two owners. This does not change in the event of a separation or a divorce, but other allowances apply after a divorce. If a joint custody account is not evenly liquidated, you must therefore pay attention to the exemptions for non-relatives, because these are significantly lower.

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