Joint Account- Tax Implications

[firsttimebuy]

Apologies if I haven't posted in the correct form.

One of my parents has a few savings accounts and has asked me to put my name on the accounts as a joint account holder that in the event of their death I would be able to access the accounts quickly and wouldn't have to wait for the will. Firstly I would like to know if this is possible and if so would there be any tax implications for me?

In the event of their death the money would be divided equally amount me and my siblings. If my name was on the account would this have any tax implications for them?

 

[ClubMan]

Firstly I would like to know if this is possible

Should be if all parties willingly agree.

and if so would there be any tax implications for me?

Deposit account interest is normally (there are a few exceptions) subject to 20% DIRT at source only. If your parent would normally be exempt and claim it back then adding you may alter this. Also you may need to declare such accounts on tax returns. However your tax liability would remain DIRT only.

In the event of their death the money would be divided equally amount me and my siblings. If my name was on the account would this have any tax implications for them?

Inheritance tax would presumably remain an issue? You (or rather your parent) might need to get professional advice on the most appropriate and beneficial way to manage things to mitigate such taxes etc.

 

[Black Sheep]

If you have a joint account with your parent and that parent dies doesn't that money automatically become yours (or does it remain part of your parent's estate) How would your siblings feel about that as their share would be reduced and it appears the intention is an equal split

 

[ClubMan]

Actually - that could be true (the money becoming jointly "owned") in which case the arrangement may trigger a gift tax event and liability.

 

[firsttimebuy]

Thats what I am unsure about. If anybody knows what the implications would be re gift tax on a joint account.