OT - Legal question on shared accounts

[Uncle C]

Two people have a shared account and are saving for a large purchase. Each is entitled to withdraw money on their single signature.

If one person dies, is the other person legally entitled to withdraw half the money or can they legally take it all?

 

[Highfields Seagull]

Surely they can legally withdraw it all even if the other person is still alive if only one signature is required.

 

[Gwylan]

Surely they can legally withdraw it all even if the other person is still alive if only one signature is required.

I see what Uncle C is getting at. Does the joint account count as part of the assets of the deceased person?

It's 30 years since I worked at the Alliance dealing with questions like this but my understanding is that, legally, the surviving partner could withdraw all the money if he or she so desired. However, the estate for the deceased could sue for half of it, if it could be proved that they had both contributed money equally. Better wait for an accountant or lawyer to reply though.

 

[Gazwag]

I would say that the deceased (assuming it not the spouse or there isnt a provision in the will) that whatever the amount they put in, including their share of any interest, is now part of their estate, irrespective of who can sign to withdraw the money. The account should also possibly be frozen until probate is obtained.

Ask the solicitor dealing with the probate.

 

[Spiros]

Sadly had to deal with this earlier this year when my father died. The joint account continues to be operated by the other signatory as if nothing had happened. On production of a copy of the death certificate you can get the name of the decased removed from the account. You can legally take it all, though as said above, though the executor should include half of the value of the account as being part of the estate, unless there is documentation to the contrary.

Not the same in Spain - the bank there are supposed to freeze half of the value of the account until probate has been granted.

 

[Notters' Dad]

The account can continue to be run by the survivor who can use the funds as they wish. Just as Spiros says.