Joint Account - Confusion

[Sul888]

I am the executor and sole beneficiary of my late father's (died June 2019) estate. I have been weighing up the DIY probate route because i have most financial details (multiple bank accounts, ISAs, share amounts) to hand, but the forms are overwhelming, so I am now contemplating the idea of engaging a solicitor/accountant. His financial affairs seem relatively straightforward apart from a big question mark over a joint account held with his girlfriend. The amount in question is significant, as it puts the estate into inheritance tax territory.

I don't know when the joint account was opened but I reckon it's been active for 10 years or so. They were a couple for over 20 years.

The amount is considerably over the £3000 tax free gift allowance so it's got me concerned if this is part of the estate's liability or the other joint account holder, i.e. the girlfriend's? I have already presented his death certificate to the bank and they have closed the linked ISAs and removed my father from the joint account.

Any advice on how this can be approached from a tax perspective?

[des8]

Condolences on your father's passing, and sorry to hear of the falling out with your father's girlfriend

If a person is a joint owner of a bank or building society account with the person who has died, then from the time of the death the joint holder automatically owns the money in the account, but for IHT purposes one has to have regard to the beneficial ownership.
HMRC guidance states (at IHTM15042): ‘You should normally regard each account holder as beneficially entitled to the proportion of the account which is attributable to their contributions. So - if the deceased provided the whole of the money, the whole of the account at death should be included in the [IHT account on death].’
I would err on the side of what the records show (HMRC will follow a paper trial, not what a step daughter claims!)

If you decide to DIY you might consider purchasing Executor's insurance (paid for by the estate) to protect yourself

[Sul888]

Thanks very much for the welcome and your detailed response, Des8.