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Joint Bank Account

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pinkjudy45 | 18:12 Tue 15th Sep 2020 | Business & Finance
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I would like to open a joint bank account with my son, what happens to the money in account when I die, does it automatically go to him?

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not officially but that's what'll happen.
Yes officially it will go to him as you both own the full balance not half each
Question Author
Thank you for your answers much appreciated x
that answer is perhaps not helpful
any one can pay in
any of the named joint holders can with draw

confusion reigns over this
you pay in £10 000 either one of you can take it out
BUT it is "traceable" - it is yours and is part of your estate (*)
even my nephew got that one wrong (egged on I regret by the bank who were advising in their own interest and not in his)

when you die - it is operable by him and is not frozen as all your singly held assets are until probate is granted
I regard this as a big big advantage

your money in it is part of your estate and is taxable as such
Your son pretends it isnt ?
oh no no! PP puts hand to face and looks like the scream by Edward Munch

The ownership bit is settled by a case called Re Northall
and is well covered by this
https://www.fridaysmove.com/articles/joint-bank-accounts-recent-case-re-northall-deceased-2010-15832

[it is pretty straighforward: Mrs Northall paid in. she died. younger Northall said "mine all mine -tax free!" and the tax judges said "oh come on you're joking, it is part of her estate and taxable, duurrrrr"
///egged on ... by the bank who were advising in their own interest and not in his///

Now there's a surprise - NOT
It depends, Judy.
You can have an ‘either or survivor’ account in which both of you can operate the bank account singly, and if either dies the other can control it until probate kicks in and then the will determines where the money goes.
I think that’s right.
From APG's link,

"Are there inheritance tax implications when a joint bank account holder dies?

HMRC asks detailed questions about joint accounts on the inheritance tax return, which is submitted as part of the application for probate or letters of administration when someone dies.

Whilst HMRC may not be too concerned about the ownership of joint accounts held by spouses or civil partners (as such transfers would be exempt from inheritance tax), they will look more closely at accounts held by others, such as unmarried couples and parents and children.

Rather than simply assuming each account holder is entitled to an equal share of the funds, HMRC usually treats account holders as owning a share of the funds which is proportionate to their contributions to the account. For example, if one account holder provided all the funds, the whole balance of the account will be treated as belonging to him or her on death, and potentially subject to inheritance tax.

Withdrawals from the account will usually be set against that person’s own contributions as far as possible.  Withdrawals which exceed a person’s own contributions may be treated as a lifetime gift from the other account holder, which could have inheritance tax consequences.

Inheritance tax due on death which is attributable to the funds in a joint account is payable by the surviving account holder who has inherited funds by survivorship (rather than necessarily from the deceased’s estate), unless there is wording to the contrary in any will made by the deceased."

Are you sure APG?
There can be IHT implications. Your link says "Whilst HMRC may not be too concerned about the ownership of joint accounts held by spouses or civil partners (as such transfers would be exempt from inheritance tax), they will look more closely at accounts held by others, such as unmarried couples and parents and children."
Crossed posts, TCL.
-- answer removed --
Yes, it gets transferred.

Doesn't mean the MWSD wont come after you later for their cut if appropiate.
NAHEED, did you read my post?
APG, your own link contradicts what you have said.
LOON: ("NAHEED, did you read my post?")

Now, if that was a general criteria on ABank, i.e. the necessity of having read someone else's post before commenting on it, then half the answers would end up expunged.

A
I see her answer's been deleted now.
Question Author
Thank you everyone that’s answered my question it’s much appreciated

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