Transferring savings to spouse before death

TomsMom

I hope this is the right forum but I wanted to ask a question as title.

If you have a terminal illness and know you only have weeks to live, is it alright to transfer savings from your own account (not a joint account) to your spouse's account (again not a joint account).

Oldernotwiser

For what purpose?

missile

If I were in that situation that is what I would do. It can be difficult for spouse to gain access to funds in those accounts after death.

TomsMom

missile wrote: »

If I were in that situation that is what I would do. It can be difficult for spouse to gain access to funds in those accounts after death.

Thank you. I was trying to write a reply to Oldlernotwiser's question but I couldn't find a way of expressing it.

I'm not conversant with what happens (generally) when someone dies other than you need death certificates to be sent off to certain places. The purpose of asking the question was to find out if it was OK to put some (or all) of the money in the spouse's account so as not have to deal with quite so much at a difficult time.

I don't know how long these things take but I know that in this case the person wants to plan as much as possible and leave everything as easy as possible for the spouse.

TomsMom

Forgot to add, this isn't to do with avoiding inheritance tax or anything like that (not talking about that sort of amount of money), it's just thinking it might make things easier for the spouse.

Biggles

TomsMom wrote: »

Forgot to add, this isn't to do with avoiding inheritance tax or anything like that

It wouldn't do that anyway.

Why not just convert that accounts into joint accounts, then the money will automatically belong to the survivor, all s/he will have to do is take a death certificate to the bank(s).

missile

TomsMom wrote: »

Thank you. I was trying to write a reply to Oldlernotwiser's question but I couldn't find a way of expressing it.

I'm not conversant with what happens (generally) when someone dies other than you need death certificates to be sent off to certain places. The purpose of asking the question was to find out if it was OK to put some (or all) of the money in the spouse's account so as not have to deal with quite so much at a difficult time.

I don't know how long these things take but I know that in this case the person wants to plan as much as possible and leave everything as easy as possible for the spouse.

I do know that in some circumstances it can be quite difficult and take a while to have funds released. Heard some horror stories of widdows being left with no money to pay for funeral expenses.

We both know the passwords to all our current and savings accounts. When the time comes we would each be able to access and transfer funds on line. I know one should not do that, but

I am sorry to hear about your situation. We all have to die some time, but in the words of the song "I want to be the last to know"

Savvy_Sue

missile wrote: »

I do know that in some circumstances it can be quite difficult and take a while to have funds released. Heard some horror stories of widdows being left with no money to pay for funeral expenses.

That shouldn't happen: generally the undertakers are happy to provide an invoice, which you can take to the deceased's bank and they'll settle direct. Not saying it doesn't happen, you understand ... and the widow may be left very short for normal living expenses, BUT for the funeral, there shouldn't be a problem - assuming you know you can do that.

dandy-candy

Its fine to do this. Just before my mum died she transfered money to pay bills inc her funeral. When (if) you fill in probate you list it although I believe you don't pay IHT when it's between spouses.

TomsMom

dandy-candy wrote: »

Its fine to do this. Just before my mum died she transfered money to pay bills inc her funeral. When (if) you fill in probate you list it although I believe you don't pay IHT when it's between spouses.

Thank you. Just wanted to check that it was OK to do such a thing. Much appreciate your reply.

gadgetmind

BTW, with shares, you should *not* transfer them to the healthy spouse as any capital gains in them get wiped out on death. In fact, you should transfer them (as an irrevocable gift) to the person with the terminal illness.