Husband & Wife joint accounts. What happens when one dies?

[Laramie]

If a husband and wife own their homes in joint names and have various bank accounts in joint names and one of them dies, do the various bank accounts simply revert back to the survivor on the production of a copy of the will and a death certificate. Assuming that in the Will, everything is left to the spouse.
Does probate have to be taken out and is there any liability in respect of CAT or CGT for the survivor?
I assume that all bank accounts are held jointly and severally, so both account holders own all of the money rather than on a 50/50 basis?

 

[thedaddyman]

I know in the case of my own parents it was a relatively straightforward basis in that each account had to be transferred from joint names to sole names. In our case, the will was simple (everything went to my Mam). It's usually a question of filling in a form with each bank and providing a copy of the death cert.

I can't see why CAT/CGT would apply since the surviving person is already the owner of the asset

 

[44brendan]

The vast majority of joint accounts are designated "either or survivor". This means that if 1 party dies the other party is entitled to draw down the funds in the account. The bank will release the funds to the joint party. However, that does not imply ultimate ownership of the funds.

 

[mf1]

"Is there any liability in respect of CAT or CGT for the survivor?"

There are no taxes payable when dealing with the transfer of assets between spouses or vesting in a survivor when one dies.

But, if the survivor is not a spouse/civil partner, but, for example a sibling or a stranger in blood, CAT may well apply. Death does not trigger a CGT situation.

mf