IHT and joint accounts

maharen

I have read that it is perfectly acceptable for joint accounts to be held between people other than two co-habiting adults.
With that in mind, would it be acceptable for me to have a joint building society account with my son or daughter - and if so, would that ensure that at my death, all monies that were in that account would fall automatically to my surviving son or daughter without it being treated as part of my estate and therefore subject to IHT liability?
Or, in another scenario, could my son or daughter withdraw virtually everything from the joint account (with my knowledge and blessing) at some time in the - hopefully - distant future when I no longer have much of a need for it, again avoiding an IHT liability?

CLAPTON

In general, if the joint a/c is funded by you then it is considered yours for IHT purposes although the bank will consider it joint and severally owned.


If you wish to avoid IHT you must give the money away without right of recovery

Mojisola

maharen wrote: »

I have read that it is perfectly acceptable for joint accounts to be held between people other than two co-habiting adults.

With that in mind, would it be acceptable for me to have a joint building society account with my son or daughter

Some people do this to make sure that there is money available immediately to a son or daughter to pay for the parent's funeral.