Jump to content


Probate Advice required


Cazz2269
style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 2832 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

Hi I'm hoping I am posting this question in the right forum?

 

My cousin who turned 50 in March passed away from a short cancer related illness. She was an only child and her mother, my aunt, is in her 80's. They had a joint savings account which they both contributed money into for more than 10 years and when she passed away the account had approximately £19,000.

 

The estate has gone to probate and when the building society were informed, they sent a cheque direct to my aunt for the full amount. We assumed that as the account was in joint names the money would automatically be hers. However, the solicitor that is dealing with the probate has advised my aunt that the £19,000 should be included as part of the overall estate, which I understand exceeds £350,000.

 

Question: As my aunt contributed to the savings account and as it was in joint names, should this still be included as part of the estate?

Link to post
Share on other sites

While i am no expert on probate, common sense tells you your aunt should at least receive 50% of the balance and the remaining 50% should go to probate as part of the estate.

 

That is simply my opinion and hopefully one of the team with more knowledge will jump in

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

Click Here To Make A Donation

I am not legally trained or qualified, any advice i offer is gleaned from experience and general knowledge, if you are still unsure after receiving advice please seek legal advice.

Link to post
Share on other sites

Thank you for responding so promptly.

 

 

I thought that if you had a joint account the money is held by joint beneficiaries so would pass to the survivor automatically - thus meaning it wouldn't fall within the estate?

 

 

As my aunt produced the death certificate the building society didn't question they automatically transferred the money (via a cheque) into my aunts sole name.

But I appreciate your thoughts do make some sense as well.

 

Thank you. I never quite know how to put posts in the right forums. So much appreciated.

Link to post
Share on other sites

While i am no expert on probate, common sense tells you your aunt should at least receive 50% of the balance and the remaining 50% should go to probate as part of the estate.

 

It really depends on who had primary beneficial interest over the funds, how much was paid in by each party, and what (if any) agreement was in place to cover the rule of survivorship. If both parties contributed equally to the account and had an equal share in the beneficial interest, then 50% of the balance at the time of death should form part of the deceased's estate. But as always in cases where money is involved, there is case law to fall back on. Two that I can find reference to are:

 

 

  • Aroso v Coutts [2002] the deceased had transferred substantial amounts into an account in the joint names of himself and a nephew. The evidence showed that the terms of the bank mandate were very clear and had been drawn to the deceased’s attention by the bank. The effect was that the presumption of the resulting trust was displaced and the balance in the account passed by survivorship to the joint account holder.
  • Sillars v IRC [2004] HMRC has successfully argued that in cases where the provider of funds is free to draw on the whole of the account, the whole of the account, not just a share, is to be included in the deceased’s estate at death.

(Full article here: http://www.lawgazette.co.uk/law/probate-resulting-trust-and-joint-bank-accounts/56341.fullarticle)

 

As you can see, the two cases provide rulings at both ends of the spectrum, so for the OP, it will hinge on what documentary evidence the aunt has as to who has claim to the funds. The first step will be to obtain a copy of any paperwork from the bank surrounding the opening of the account and statements evidencing who deposited what.

 

Final point to add: As it would appear that Inheritance Tax is due, HMRC will take a greater interest in the sums involved and require a higher standard of proof than if the estate was under the IT threshold.

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

No... you can't eat my brain just yet. I need it a little while longer.

Link to post
Share on other sites

Joint accounts typically allow either of the people named on the account to withdraw the full amount. Sole ownership of the account belongs automatically to the other person on death. Nothing passes into the deceased's estate.

 

I do not know why the solicitor thinks this money should be included in the overall estate. Perhaps you should ask why he/she thinks this.

 

You do need to check the details of the account (i.e. what type of account it is) in order to verify whether it is actually a joint account. For example, an account which they both paid into could still be a sole account if only your cousin opened the account.

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...