Joint Accounts and IHT

segovia

Does anyone know if a joint savings account between mother and daughter is valid in the context of IHT and the 7-year rule. i.e. if it's joint is it still a gift ?  

p00hsticks

I think it may depend on how that account is being funded and by whcih party .. as I understand it normally if one dies then other would automatically be entitled to the balance. And if jointly funded,  50% of that balance would be  treated a part of the deceased's estate. But if the account was solely funded by the deceased then that percentage could be taken as up to 100% 

According to this website 
What happens to a joint bank account when someone dies? | The Gazette
'Whilst HMRC may not be too concerned about the ownership of joint accounts held by spouses or civil partners (as such transfers would be exempt from inheritance tax), they will look more closely at accounts held by others, such as unmarried couples and parents and children.

Rather than simply assuming each account holder is entitled to an equal share of the funds, HMRC usually treats account holders as owning a share of the funds which is proportionate to their contributions to the account. For example, if one account holder provided all the funds, the whole balance of the account will be treated as belonging to him or her on death, and potentially subject to inheritance tax.'

Keep_pedalling

If this is just an account of convenience with only one party funding it then the whole account falls into that parties estate. It is not a gift and the y year rule does not apply.