What Happens to a Joint Bank Account Upon Death?

When a joint bank account holder dies in the UK, what happens next? Dealing with death is difficult, even more so when it comes to managing finances. If your loved one has a joint account, perhaps with you or someone else, you’re likely wondering what’s going to happen to it. To learn more about what happens to a joint bank account upon death, continue reading.

What is a Joint Bank Account?

A joint bank account is a type of account held in the names of multiple people. In the UK, most banks limit joint accounts to just two individuals, but some allow options for more. Joint holders have equal access to the funds within the bank account and share full responsibility for it.

Who Can Have a Joint Bank Account?

Anyone can have a joint bank account. While it’s common for couples to share a bank account to manage their finances, there’s no specific relationship status required to open a joint account. This means it’s entirely possible to share a joint account with a parent, relative, or even a friend if you wanted to.

What Happens to a Joint Bank Account When Someone Dies?

So, what happens to joint bank accounts when one person dies? Unlike managing individual accounts belonging to the deceased, joint accounts are handled differently. When someone passes away with a joint bank account, all funds in the account automatically go to the remaining joint holder. The remaining account holder must notify the bank of the death, and may have to show a death certificate.

Tax Implications After a Joint Bank Account Holder Dies

Joint bank accounts in the UK are set up as joint tenants by default. This means that both joint holders have equal rights to funds, and if one sadly dies, any money left in the account goes to the remaining survivor without them having to pay tax.

However, in rarer cases, some joint bank accounts are set up as tenants in common, where joint holders own a specific share of the money. If your shared account is set up this way through a legal agreement and approval from your bank, remaining funds in the joint account belonging to the deceased may be subject to Inheritance Tax.

Do You Need Probate for a Joint Bank Account After Death?

For most joint bank accounts in the UK, probate is not required. As mentioned, standard joint accounts are set up as joint tenants by default, and all funds go to the remaining account holder without the need for probate. But, if in rare circumstances your joint account is set up as tenants in common, probate may be required to distribute the deceased's remaining funds in line with their Will.

Key Takeaways

• When someone passes away with a joint bank account, all funds in the account automatically go to the remaining joint holder
• For most joint bank accounts in the UK, probate is not required
• Only joint accounts set up as tenants in common face tax implications and require probate

Trusted Advice When You Need it Most

At Bell Lamb & Joynson, we offer expert legal advice when you need it most. Trusted for over 200 years, our firm consists of reliable and dedicated solicitors who are here to support you. We understand how upsetting it is to deal with the death of a loved one, especially when it comes to organising their finances.

We can offer general tax advice and support as you manage someone's accounts after death. Our trusted team can also assist you with probate, taking on any additional legal paperwork and administration you may be having to deal with after a loved one's death.

Contact our friendly team today for guidance after a loved one's passing.