Joint bank accounts query

Flakie

My husband and his brother and sister are opening a joint bank account together to hold monies left in trust from their late father. It is going to remain untouched as it may be required at some point in the future for care fees for their mother who is in a care home. 

My question is if one of the siblings dies whilst the account is open what happens to their share? Would it be passed on to their NOK - wife or husband - in accordance with their will or be split between the two remaining account holders? Thank you. 

colsten

If the money has been left in trust for their mother, belongs to her, not to the three of them. This if one or more of them pass away, the money still all belongs to the mother.

eskbanker

The selection of a bank account needs to match the structure and constitution of the trust, so if a simple joint account (with its standard feature of surviving account holders owning the money if one dies) doesn't fit the bill then it's time to get some advice about how the specific provisions of the trust can be implemented.  Presumably a solicitor is/was involved with drawing up the trust arrangements?

Flakie

The money is not in trust for mum but it’s half of property money which was left to the three of them. That’s all academic as the main query is about a joint account with three people who are entitled to the money between them. Sorry if I’ve not explained myself properly. 

xylophone

Your husband and his siblings have received an inheritance from their father's will but they have decided that as they do not need the money, they will set it aside in a joint account against the time it may be needed for their mother's care?

A joint savings account seems more appropriate for this purpose than a joint current account?

Interest rates are very poor at the moment but they might find  something suitable here
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

The money in a joint account passes by survivorship - when one party dies, the others retain his share.

This does not mean that the deceased's share does not count against his estate for IHT purposes - it would have to be reported on the relevant forms in the usual way when applying for probate.

colsten

If it is only about a joint current account:

1. there are only a limited number of banks which offer more than 2 joint account holders
2. joint accounts create a financial association on the credit reference files of each account holder
3. what rights individual account holders have, what happens in case of disputes, and what happens if one or more of the account holders die will be defined in the T&Cs of the account

I am not sure whether any provider offers savings accounts for more than 2 account holders.

Flakie

Xylophone - so to protect the interests of a surviving spouse of one of the account holders it would be more sensible to split the money and let each individual have it in their own name to hold and that way if anything happened to them it would go directly to their NOK and not the other two account holders? 

colsten

Flakie said:

Xylophone - so to protect the interests of a surviving spouse of one of the account holders it would be more sensible to split the money and let each individual have it in their own name to hold and that way if anything happened to them it would go directly to their NOK and not the other two account holders? 

It seems certainly easier if each of the heirs deals with their own share by themselves.

Whether their money goes to their NOK or elsewhere depends on whether they have a will, and if so, what that will says.

Flakie

That answers my question so thanks. 👍