Tax query on savings

dewdrop

I have been under the impression that if i had a joint deposit with my wife and when i passed away the Revenue would not have any queries in the matter. My widow would furnish a Death Cert to the bank and arrange to have the funds put into herr sole name. The reason i am querying this is a friend of mine passed away and his widow got queries from Revenue re the deposit which they had in joint names. Their tax affairs as far as i know were in order.

Peregrinus

From a probate point of view, the inheritance of joint accounts by the surivivor is very straightforward, and works as you describe.

There may be Revenue interest, depending on the circumstances. Assuming the joint accountholders are married, there's no question of Capital Acquisitions Tax, since gifts and inheritances between spouses do not attract CAT. But if there's a large balance in the account and no obvious source of income to explain where it came from, the Revenue might ask questions.

dewdrop

Thanks very much for your reply. In the case i mentioned where only assets are a residence and bank deposit both jointly owned how would the revenue get involved as the bank deposit could be put into name of survivor by producction of a death cert. Not sure procedure re getting the house put into sole name.

Peregrinus

If the house is also in joint names (and, technical point, the co-owners are joint tenants, not tenants-in-common) then it too passes by right of survivorship and you have have it registered to the survivor on production of the death certificate and payment of a modest fee. No need for a grant of probate.

Which means, yes, the whole thing may not come to the attention of the Revenue Commissioners - at least, not at this stage. But note that, if it does come to their attention, nothing you have said so far suggests that this will result in any tax liability. The Revenue may ask questions, but the answers to those questions may lead to the conclusion that there is no tax liability.

gerrybbadd

Revenue may be interested in the balance on account, and how it was accumulated. If it is substantial, with no obvious reason for the amounts on deposit, they have to ask