Three person joint account
Discussion
CheesecakeRunner said:
Thank you for that,Countdown said:
Out of interest what happens from an IHT perspective if one of the account holders dies?
For example an 80 year old bloke has a joint account with his sons with £3m in the account. If and when he pops his clogs how is the £3m treated for IHT purposes?
It’s a quirky question but I’ll go out on a limb and say it depends on contributions into the pot and after that the 7 year rule would apply…….?For example an 80 year old bloke has a joint account with his sons with £3m in the account. If and when he pops his clogs how is the £3m treated for IHT purposes?
Even then, as they could have instant access and would be accruing interest…is it a gift with reservation so no 7 year rule…..?
My heads about to explode
Where’s Julian, Nik or Alpinestars when you need them !!!
On the face of things money in a two person joint account is presumed to be owned 50:50
If one person is making deposits and the other isn't, but both are spending from it, then each deposit into the account is a gift of 50% to the other person.
If both people are fully using the account then if one of them dies the other receives a "gift" of half the value in the account at date of death.
You can't dodge IHT simply by opening joint bank accounts.
The presumption of 50:50 ownership can be rebutted. For instance, an account may be operated in joint names when all the money going into it and all the spending out of it is by/for only one of the account holders. That one person has 100% ownership. The second joint account holder is doing nothing different from an "authorised signatory" on another person's single name account; he/she has no personal interest in the money.
If one person is making deposits and the other isn't, but both are spending from it, then each deposit into the account is a gift of 50% to the other person.
If both people are fully using the account then if one of them dies the other receives a "gift" of half the value in the account at date of death.
You can't dodge IHT simply by opening joint bank accounts.
The presumption of 50:50 ownership can be rebutted. For instance, an account may be operated in joint names when all the money going into it and all the spending out of it is by/for only one of the account holders. That one person has 100% ownership. The second joint account holder is doing nothing different from an "authorised signatory" on another person's single name account; he/she has no personal interest in the money.
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