What happens when that day comes?

127001

Sorry to bring up the morbid one. 
My wife and I are both in our mid 40s yes plenty of years ahead but we got thinking what would happen if one of us croaked.
We own our house outright, we operate separate bank accounts and whilst we do have a joint account it was to make transferring money between us easier.  
We both have Prem Bonds at max each, savings in marcus accounts circa 15k each and save around 1.5k per month each and prob move to S&S Isa soon.
We both have access to each others banks, probably technically wrong but we are H&W, hide nothing and when we discuss moving money around she will log in to my accounts and do this.
If I croaked today does my wife log in and draw down prem bonds, marcus etc to my bank account and use the joint account to move it to her.?
We don't have a will, so in the absence of one of these I presume she gets everything as we have no kids?  I want her to have everything with least hassle. 
How does IHT apply am guessing cash is well under the level but house is worth 300k, surely that would go just to her and IHT does not apply on my share?

Thanks

wannabe_a_saver

I would strongly suggest you write wills, they only need to be simple ones, but it would make things much easier for the survivor when the first of you dies.  

Is your house owned as joint tenants or tenants in common?  If joint, then the house will automatically pass to the survivor and not be part of the estate.

El_Torro

I’m no expert on the subject but I’m pretty sure that no, you can’t just log in to a dead person’s bank account (even if they are your spouse) and access the money. You need to get probate, etc... as normal. You shouldn’t have your spouse’s login details. Nobody really cares that you do, though I think they will care if there is activity on the account after the person has died.

Without a will, yes you will inherit everything if she dies, and vice versa.

No, she won’t pay inheritance tax in this case, inheritance tax will only potentially apply once you’re both dead.

colsten

It's not a pleasant subject to deal with, so well done for getting your heads round it. There is good info here: https://www.moneyadviceservice.org.uk/en/categories/when-someone-dies

Whilst you don't need a will to pass your worldly goods to a surviving spouse, you should still consider one, as eventually the last one of you will go, or you might both go at the same time. Also, do each of you have Power of Attorney sorted?

Linton

There is no IHT for assets left to a spouse.  The surviving spouse gains the unused IHT allowance of the deceased.

If the house is in joint names rather than tenants in common and one owner dies the other automatically gets ownership of the whole property. SImilarly for joint bank accounts.

Banks will normally transfer the contents of a private bank account up to a fairly high value to the executor on production of a death certificate and will.  Premium bonds will I think need probate.  You will need probate for investments other than pensions.

Money in pensions normally goes, outside the will, to the person nominated in the "expression of wishes" form.

Much better to have a will even if everything is going to your spouse as it should specify the executor and so will minimise the steps required tro get probate and make life easier when dealing with other organisations.  If you dont have a will and have never had children your spouse will get everything.

xylophone

Is the house owned as joint tenants?

If so, it passes to your wife automatically as does any money in the joint account regardless of the terms of any will/intestacy.

If you own £50,000 in PBs, then if you were to die then your wife would almost certainly need Letters of Administration to gain access to these funds.

If you were to die together, what would you wish to happen to your estates?

You could each make a will  naming each other and one or two other people as executors and leaving your total estate to the other with a proviso that in the event of  the spouse predeceasing , the estate goes to.........( cousin Mary/best friend Tom/ charity etc).

https://www.moneysavingexpert.com/family/free-cheap-wills/

And  each consider Power of Attorney 

https://www.gov.uk/government/publications/make-a-lasting-power-of-attorney

Thrugelmir

Start by getting mirror wills drawn up. Review your pension provision. As a more tax efficient method for providing for each other and protecting the family in the event of an early demise. 

127001

thanks everyone quite a ew things to research.  House is joint owned etc so all good there.
Grim subject I know but would rather think about it now and have a plan than.  

Albermarle

You did not mention any pension provision, although a couple of the replies did . THis question was important .
Money in pensions normally goes, outside the will, to the person nominated in the "expression of wishes" form.
Have your pensions ( assuming you have some ) all got the expression of wishes form filled in ?

wannabe_a_saver

127001 said:

thanks everyone quite a ew things to research.  House is joint owned etc so all good there.
Grim subject I know but would rather think about it now and have a plan than.  

Owned as joint tenants where you each own 100% or as tenants in common where you each own (usually) 50%?

TheAble

Re the wills. If it's spending the money on it that you don't fancy (as I didn't) consider doing it using the "Will Aid" scheme (think it's every November). Participating solicitors will do your will for "free" in return for you making a charity donation. I paid/donated £150 for a pair of mirror wills for me and the wife. This was a few years ago, I think it's more now, but still represents a good saving.