What happens to a joint bank account when one of the joint holders dies?
If there is no evidence of what the parties intend then the presumption is that neither joint holder intended to make a gift or a loan of their contribution with the result that their contribution reverts back to their estate and devolves in accordance with their will or the Intestacy Rules if they have not left a will.
However the position is slightly different where bank accounts are held jointly by a husband and wife or a parent and child. In such a case if the money in the account has been provided by the husband or the parent then on their death the law presumes that they intended the wife or child to inherit the account.
Those presumptions can be rebutted provided there is evidence of the intentions of the person putting the money into the bank account.
The message is therefore clear. When setting up a joint bank account it is important to record somewhere in writing what the intention is about how the bank account is to devolve when one of the joint holders dies.
For further information about this topic or about the ownership of any jointly held assets after one of the joint owners has died, contact Nick Lambert on 0114 266 6660 or email [email protected]
