Legality of using account in joint name with deceased

Sonsequence

This may not be so much about tax as what HMRC thinks is legal before probate.

My Mother died last May and I am her sole heir. She signed her current account into join ownership with me a week or two before she died. Here's the possible trouble:

I wasn't in much of a state for admin, research or common sense so with all the looking after and visiting her in the last few weeks I didn't take her signed joint ownership form to the bank until the day after she died. There was a funeral to pay for. Also, someone told me that they'd probably automatically find out from the DWP soon enough and freeze the account. 10 months later I see that was a bit more 1984 than where we're at and they still think she's living.

So. I now know that it'll go into my sole ownership when I report it to them. I'm also reassured by this on DirectGov website: "...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. "

But... I got a letter out of the blue recently with a cheque for a few thousand inheritance from a friend of my Mum's who died 2 years ago. The executors didn't seem to be aware she'd died and it was made out to her. I failed to get round to writing a letter back to the executors (a phone number would have made it easier) explaining what was going on and last week in a fit of "get-on-with-it" I thought, ok I'm the sole heir and her Will is invalid for not having been witnessed (though I'll be executing it), this money will eventually be formally granted to me and right now there's a headstone to pay for...So I paid it into the account which now I think of it simply shouldn't have her name on it.

Haven't touched it yet but is it a against the law to use money that is eventually awarded to you anyway or would it only be if a secret husband or child were to magically appear and the estate be split?

Either way, I'm finally writing that letter to those executors now to ask if they want it back in view of the circumstances.


Thanks for your help

Adam

John_Pierpoint

What date did you mother put on the form that gifts a 50% interest in her current account? I would think that is the day she intended to give you that interest in the account.

The money due from the old friend who has died goes legally into mother's estate.
Right from the date of death it would have been easier if you had opened an account designated Sonsequence trustee of Mrs mum deceased.
The legal measure of your mother's wealth need NOT be the same as the taxable value of your mum's net worth - for example a gift occurs legally at the moment of giving but takes 7 years to drop out of the tax account; and that money from an old friend is likely to be in the tax account too. Did your mother get paid interest on the capital bequest (if that is what it was, do you have a copy of the will?) in view of the long delay before it was paid? (If not why not?)

Now let us be practical, and think about mother's total net worth.
Has mother any other close relatives, who were dependant on her?
What became of dad?
When dad died were they still married?
What had your mother inherited previously from her legal partner/spouse? Where in the range £0 -> £325k -> £650k does your mother's total net worth fall?
How does that split down into assets and liabilities?.
When did you obtain probate?

As the executor the rights of the estate over ride all your personal rights as an individual, however if you are the only beneficiary and the rest of us in the form of HMRC are not priority beneficiaries, you are only muddling up your own money.

After you have obtained probate you as executor/trustee put a two month notice in the London Gazette and a local paper advertising for claimants - if none come forwards within those two months and that coupled with the 6 months that dependants have to claim, mark the end of your responsibilities.

That said there are usually other issues such as benefits and income tax that also need sorting out by the executor?

Now tell us in which country mum was resident, ordinarily resident and domiciled.:D