Probate for loint accounts?

cepheus

Iv'e just been speaking with a friend over lunch. Her Mother has passed away and she shared joint bank accounts with her. No will was left, but it is not a large inheritence. Does this estate legally have to go to probate? Surprisingly CAB suggested not dispite having a sister. She wants a private settlement with her sister.

CLAPTON

Joint accounts are jointly and severally owned... so your friend is now the sole owner. and is outside probate.

There is insufficient info to say whether the mother's estate needs probate

eslick

have a look here

http://www.direct.gov.uk/en/Governme...on/DG_10029468

http://www.direct.gov.uk/en/Governme...on/DG_10029802

there is still a lot to do even when there is no will

cepheus

Based on this site there is nothing to do if the account is jointly held and inheritance tax is not an issue

Money in joint accounts

The deceased person may have held money with another person in a joint bank or building society account. Normally this means that the surviving joint owner automatically owns the money. The money does not form part of the deceased person's estate for the purpose of administration and therefore does not need to be dealt with by the executor or administrator. However, a deceased's person's share in joint property is treated as part of their estate for inheritance tax purposes, both on death and on gifts made during their lifetime.

dzug1

It depends on the reason for the joint bank account. If it was joint only in order that your friend could pay bills on behalf of her mother, whose money it actually was, then the account doesn't really belong to her and she is not automatically entitled to keep the money.

Still doesn't need to go to probate though as in practical terms she has access to it. She should share it according to intestacy rules - ie 50% each to herself and sister, assuming there are no other relatives.

If both your friend and her mother put money into the account - eg for household running expenses - then it's a true joint account and it is now hers. No need to share it with the sister - though nothing to stop that happening if that's what's wanted