My elderly father has recently sold his main residence so his main assets are now the proceeds of the house sale. He plans to split his assets equally between his two children on his passing. I'm trying to establish if there are advantages to opening joint accounts now with both children and depositing equal amounts of the cash in joint names so €200k could be held in each account under the deposit scheme guarantee. My father is happy with this approach as he fully trusts both children.
Based on my research it appears the cash balances will automatically pass to each child through survivorship on his passing (and not go into the estate). It also allows access to the cash should my father become incapacitated. I also understand there are no immediate tax implications when the accounts are established, however the funds would be subject inheritance tax on his passing.
Is there anything else I need to consider with such an approach to organising one's affairs?
Thanks in advance.
Based on my research it appears the cash balances will automatically pass to each child through survivorship on his passing (and not go into the estate). It also allows access to the cash should my father become incapacitated. I also understand there are no immediate tax implications when the accounts are established, however the funds would be subject inheritance tax on his passing.
Is there anything else I need to consider with such an approach to organising one's affairs?
Thanks in advance.