IHT on payment from joint account

[sam66]

Hi, could anyone advise me on this one please:

My wife and I have a joint bank account (we don't have individual accounts) from which we plan to pay £50k to our children in the near future. This amount is over and above the NRB exemption limit.

If we both survive another 7 years, the £50k will not be subject to IHT. Correct?

What happens if ONE of us passes away before the seven years have lapsed? Will the whole amount attract IHT?

[maths]

A gift of 50k from joint account is treated as if each of joint holders has gifted 25k; PETs.

If one of joint holders dies within 7 years IHT may arise (depends upon what other gifts have been made in previous 7 years). Assuming no earlier gifts then the 25k will fall subject at the 0% as it would fall within that person's nil rate band. This would reduce the nil rate band available on death of that joint holder.

For the other joint holder who has not died that person has no IHT issues.

[sam66]

Thank you very much