No More, What If....

sgx2000

So....  A couple of updates

It turns out that an account with £25K in it, is an old joint account that was still active after the divorce.
The deceased  moved £25k in to it 20 days before he died. (of covid) 

The bank has written to his ex-wife (my sons grandmother) informing her that as the account was in joint names, the account has now been amended to her sole name..... (now gives her probably enough to stay in her home until she dies)
Does this amount have to be declared for IHT??  classed as part of his estate??

Second,  I have had a letter from the DWP  asking me to fill a form re his Disability living allowance shortfall / over payment.
Lets hope this is a small amount, as I believe the executor could be liable if the claimant has claimed incorrectly..!!!

Flugelhorn

@sgx2000 - the exec wouldn't be personally liable, only the estate

letthemeatcake

Disability living allowance is a non means tested benefit so any savings shouldn't effect it. It will probably be whether his last monthly payment was incorrect.

p00hsticks

sgx2000 said:

It turns out that an account with £25K in it, is an old joint account that was still active after the divorce.
The deceased  moved £25k in to it 20 days before he died. (of covid) 

The bank has written to his ex-wife (my sons grandmother) informing her that as the account was in joint names, the account has now been amended to her sole name..... (now gives her probably enough to stay in her home until she dies)
Does this amount have to be declared for IHT??  classed as part of his estate??

I'm not an expert, but my understanding is that where joint accounts are involved, as the bank has suggested, funds would automatically pass to the survivor. Usually it;s taken that the fundsare owned 50-50 before death, so half would be included in the deceased's estate, but in a case such as this, wher the deceased has deposited a large amount shortly before death, I think you'd have to include the whole amount of £25k, plus half any previous balance in the estate

Keep_pedalling

sgx2000 said:

So....  A couple of updates

It turns out that an account with £25K in it, is an old joint account that was still active after the divorce.
The deceased  moved £25k in to it 20 days before he died. (of covid) 

The bank has written to his ex-wife (my sons grandmother) informing her that as the account was in joint names, the account has now been amended to her sole name..... (now gives her probably enough to stay in her home until she dies)
Does this amount have to be declared for IHT??  classed as part of his estate??

Interesting question. If they were married 50% would need to be declared but as they were not the other 50% might be considered a gift ( less any unused annual allowance) might need to be declared. 

If the estate is all exempt anti it makes no difference then declare the lot, other wise call HMRC for advice.

sgx2000

Again... Thanks for all the replies / Advice