“And/Or” Account

• Function

  • Enables surviving co-holder to automatically own the account

• Limitation

  • Owner necessarily dilutes his ownership
  • Common only with bank deposits

• Tax Treatment

  • Bank is required to disallow withdrawal unless estate tax is paid. Withdrawal without tax clearance gives rise to perjury
  • Commissioner may inquire into account despite R.A. No. 1405, as amended.