The state of the art ab initio calculations reveal the effect of a scanning tunneling microscopy tip on magnetic properties and conductance of a benzene-adatom sandwich on Cu(001). We concentrate on a benzene-Co system interacting with a Cr tip. Our studies give a clear evidence that magnetism and conductance in molecule-adatom junctions can be tailored by the STM tip. Varying the tip-substrate distance the magnetic moment of the Co adatom can be switched on/off. The interplay between spin-polarized electron transport through the junction and its magnetic properties is demonstrated. A spin-filter effect in the junction is predicted.