Joint account with family

kerfootuk

If I open joint savings accounts with my grown up children (all over 18) and deposit say £25000 in each one what are the tax implications when they withdraw money from the account.
I'm trying to give them access to our money without worrying about IHT in case we don't survive 7 years.

McKneff

No tax implications for them 

Keep_pedalling

You clearly have little understanding of how IHT works? If you want to gift money to your children just do it, no need to pass it through joint accounts.

Di you know is your joint assets actually take you into IHT territory? This could be as high as £1M for a married couple?

kerfootuk

Keep_pedalling said:

You clearly have little understanding of how IHT works? If you want to gift money to your children just do it, no need to pass it through joint accounts.

Di you know is your joint assets actually take you into IHT territory? This could be as high as £1M for a married couple?

So the 7 year rule only applies if your estate is above the IHT allowance?

Keep_pedalling

kerfootuk said:

Keep_pedalling said:

You clearly have little understanding of how IHT works? If you want to gift money to your children just do it, no need to pass it through joint accounts.

Di you know is your joint assets actually take you into IHT territory? This could be as high as £1M for a married couple?

So the 7 year rule only applies if your estate is above the IHT allowance?

It still applies, but if the starting point is that there is no IHT liability then there will still be no IHT if you die within 7 years, unless you come into money (lottery win, inheritance) after making the gift.

Even if your estate is in IHT territory, gifting never creates more tax than would be p paid if you never made the gift.