Inheritance Tax -Joint Bank Account

Keep_pedalling

poppystar said:

Keep_pedalling said:

WeepingWillow25 said:

Thank you sneedshelp and I am sorry for the loss of your mum, it's just so painful. I will definitely take your guys advice and hold off on the paperwork. Today has been one of the worst days I've had since he passed, I think I wasn't ready to try sorting through things yet.

The only really important thing to do, if you have not done it already is to inform the bank. The account should be frozen to prevent any more payments going in or out of it.

As it’s a joint account with OP I’m not sure it has to be frozen. The joint account I had with my father was simply transferred into my name by the bereavement team. Any direct debits or standing orders needed to be changed with the organisations concerned but other than that I was able to use my debit card for the account and write cheques to people owed straight away. 

OP speak l to the bereavement team at the bank, their number should be easily found online, and they will tell you what they see as the next step with them. You might start by moving some of the money into interest bearing accounts even if you are not going to touch it yet, assuming you are happy with interest from your belief standpoint. 

As none of the rather large amount of money in the account belonged to the OP it really should be frozen. 

WeepingWillow25

I am sorry for your loss poppystar. Thank you both for the replies, the information is much appreciated. Once I've gotten a bit of a better grip on my emotions I will take your advice. It sounds like the bereavement team is definitely the next step. Again thank you for your time and consideration x

poppystar

Keep_pedalling said:

poppystar said:

Keep_pedalling said:

WeepingWillow25 said:

Thank you sneedshelp and I am sorry for the loss of your mum, it's just so painful. I will definitely take your guys advice and hold off on the paperwork. Today has been one of the worst days I've had since he passed, I think I wasn't ready to try sorting through things yet.

The only really important thing to do, if you have not done it already is to inform the bank. The account should be frozen to prevent any more payments going in or out of it.

As it’s a joint account with OP I’m not sure it has to be frozen. The joint account I had with my father was simply transferred into my name by the bereavement team. Any direct debits or standing orders needed to be changed with the organisations concerned but other than that I was able to use my debit card for the account and write cheques to people owed straight away. 

OP speak l to the bereavement team at the bank, their number should be easily found online, and they will tell you what they see as the next step with them. You might start by moving some of the money into interest bearing accounts even if you are not going to touch it yet, assuming you are happy with interest from your belief standpoint. 

As none of the rather large amount of money in the account belonged to the OP it really should be frozen. 

My understanding is that in the case of a joint account it reverts to the surviving account holder. In fact that is one of the reasons why joint accounts should be entered in to with care as it would be taken into account in divorce or bankruptcy situations. This is regardless of where the money came from. In fact I’m sure this was made clear when we changed my father’s account from sole to joint. Obviously when completing the IHT forms I declared all the money as his! 

There might be reasons why someone might want to freeze such an account if there was to be a distribution of assets to other beneficiaries but OP is an only so will inherit it anyway. Having said that the bank certainly never asked me for any details others who might have a claim.

I’m also sure that most couples see the money in a joint account as ‘theirs’ regardless of who put it in there. The spouse would expect to have the contents of that account after death😉

Hopefully when OP feels strong enough to contact the bereavement department they will clarify how they see the situation and what they see as the next steps. I suspect that regardless of the amount of money in the account they will treat it as any other joint account.

Keep_pedalling

poppystar said:

Keep_pedalling said:

poppystar said:

Keep_pedalling said:

WeepingWillow25 said:

Thank you sneedshelp and I am sorry for the loss of your mum, it's just so painful. I will definitely take your guys advice and hold off on the paperwork. Today has been one of the worst days I've had since he passed, I think I wasn't ready to try sorting through things yet.

The only really important thing to do, if you have not done it already is to inform the bank. The account should be frozen to prevent any more payments going in or out of it.

As it’s a joint account with OP I’m not sure it has to be frozen. The joint account I had with my father was simply transferred into my name by the bereavement team. Any direct debits or standing orders needed to be changed with the organisations concerned but other than that I was able to use my debit card for the account and write cheques to people owed straight away. 

OP speak l to the bereavement team at the bank, their number should be easily found online, and they will tell you what they see as the next step with them. You might start by moving some of the money into interest bearing accounts even if you are not going to touch it yet, assuming you are happy with interest from your belief standpoint. 

As none of the rather large amount of money in the account belonged to the OP it really should be frozen. 

My understanding is that in the case of a joint account it reverts to the surviving account holder. In fact that is one of the reasons why joint accounts should be entered in to with care as it would be taken into account in divorce or bankruptcy situations. This is regardless of where the money came from. In fact I’m sure this was made clear when we changed my father’s account from sole to joint. Obviously when completing the IHT forms I declared all the money as his! 

There might be reasons why someone might want to freeze such an account if there was to be a distribution of assets to other beneficiaries but OP is an only so will inherit it anyway. Having said that the bank certainly never asked me for any details others who might have a claim.

I am being cautious here because of the very high amount of money in the account. I just think it would be wise to advise the bank of the situation to avoid the possibility that they flag it up for investigation and add even more stress to the OP. 

WeepingWillow25

Thank you both for your consideration. I will try my best to contact the bereavement team sooner rather than later, might make me feel better just to get it sorted, though saying that I thought the same today and I ended up upsetting myself so much.

poppystar

WeepingWillow25 said:

Thank you both for your consideration. I will try my best to contact the bereavement team sooner rather than later, might make me feel better just to get it sorted, though saying that I thought the same today and I ended up upsetting myself so much.

That sounds a good idea but take it gently on yourself. At least there is no one else likely to know about the money or the details so there is not as much urgency to secure it. If the very worst happens the bank freezes the account but as you’re not using it even that wouldn’t be a rush situation. It can be very easy to feel pressured and there is much I wish I’d taken my time over in hindsight - more to do with the house and possessions and funeral than money as I actually found benefit in tackling the paperwork. Moving money around was a lot easier than deciding what possessions to keep!  It is hard doing it on your own too. Take care.

Also remember you don’t have to make any decisions immediately while talking to the bereavement team. Gather the information on how they see the next step then have a think and a coffee and a pat on the back and take the next step in your own time, they’ll still be there when you’re ready🙂

WeepingWillow25

Thanks Poppystar, I know what you mean about the possessions, my dad was a person who loved buying little bits and bobs. There is still a bag of small cars in my dad's room that he bought for my son, hard to deal with everything as there just seems to be a little story attached. Hopefully it will be a straightforward situation, with the bank. 
I can't thank you enough x

toomuchinfo

I am sorry for your loss, my husband passed away just before Christmas and I know how difficult this time is for you.

I believe that, although your father owned all the money in the account, as there was no will, you are an only child and the account is a joint account then the account will revert to you without the need for letters of administration.

WeepingWillow25

Oh my goodness toomuchinfo, I am so sorry for your loss. Thank you so much for the advice during what is such a difficult time for you. I thought I had a grip on it, but in the last two weeks or so I can't think or talk about him without breaking down.
Fingers crossed your interpretation of the situation is correct. Take care and thank you again xx

Savvy_Sue

You haven't said what your dad's living arrangements are, and whether you were living with him / he was living with you?

I only ask because if he was living alone and renting, you need to inform the landlord and agree the time period in which you will return the property - and make arrangements for paying rent for that time. 

And if you were living together in rented property, whose name is on the tenancy agreement? And is it a private or social landlord?