Setting up Joint account for 4 people (parents and siblings)

Hi everyone.

I have a joint account for my wife and I.

I want to add my 2 children to it so that there are 4 people on the account

OR

I want to set up an account with 4 signatories on it - me, my wife, my 2 children.

(yeah yeah, i'm taking a risk in that my kids love me and the wife and love each other lol! - but let's pretend its happy families ok!)

Is the following correct or are there impediments to doing the following?

1. I die and the money remains accessible to my wife and children - ie it can't be frozen by Bank/Probate?
2. My wife then dies after me, and the money remains accessible to my children as they are parties to the Joint account?

Is this legally possible? Or is there something about next of kin and the way they are treated differently?

If the above ISN'T possible, (and notwithstanding the sale/disposal of the sale of house and other assets on the death of my wife and I) is there a way in which the money in a bank can be allowed to pass on to children (issue) without probate causing it to be frozen by the bank until the probate process is concluded?

Many thanks

warrendublin said:

is there a way in which the money in a bank can be allowed to pass on to children (issue) without probate causing it to be frozen by the bank until the probate process is concluded?

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So this is the problem you are trying to solve.

You should assume that your wife and you are not going to die at the same time.

So if you have a joint account with your wife, then you are covered.

When one of you dies, then revisit it.

A joint account creates all sorts of problems. If they are every means tested, is that part of their means?

If you put money in the account, is that a gift to them and subject to the CAT?

If one of them is careless and they get scammed, who pays?

So keep everything simple.

Brendan

Brendan Burgess said:

So this is the problem you are trying to solve.

You should assume that your wife and you are not going to die at the same time.

So if you have a joint account with your wife, then you are covered.

When one of you dies, then revisit it.

A joint account creates all sorts of problems. If they are every means tested, is that part of their means?

If you put money in the account, is that a gift to them and subject to the CAT?

If one of them is careless and they get scammed, who pays?

So keep everything simple.

Brendan

Click to expand...

Hi Brendan

Many thanks for the message.

TBH, it is because of the inordinate delays in the Irish probate process that I am considering options now!

I appreciate the points around means and gifts and knock on CAT potential.

The intent was to deny the siblings access to the account until both parents had passed so scamming wouldn't be an issue.

Still, as you say, i'll keep it simple and maybe i'll figure out some other way to ensure my children are not denied timely access to their legacy ;-) . but not for a few decades yet....

Seems like a lot of risk and hassle to be bringing on yourself just to avoid putting a particular bank account through probate at some unspecified future date.

I was the executor for an uncle of mine. He was never married or had any kids and he wanted all his affairs in order, including paying for his funeral. He opened a joint account with me as the other named person and put a sum of money in it to cover his funeral, which I then paid for. The rest of the money was subject to probate.

I am sure in the case of money being in a joint account with a parent and child as the named account holders, Revenue will look at the source of the money and it is then subject to probate, which includes the calculation of any tax liability. If you are trying to avoid probate because of how long it takes, you are also avoiding paying the taxation on the inheritance payable to the Revenue...even if that is not your intention.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

In case you are not aware of it, Credit Unions have a facility for a nominated person:

If the deceased person had a credit union account and completed a valid nomination form when opening the account, the money in the account, up to a maximum of €23,000, goes to the nominated person or persons. Any remaining balance forms part of the deceased’s estate and is distributed in accordance with the person’s will or the law on succession.