Probate and joint accounts

[davidxt]

My parents in their 90s have mirror wills leaving everything to each other. They individually hold assets that will generate an unwelcome amount of the new probate charges - plus they also have some assets held in joint names. Hence there will be rather a lot to be paid upon both deaths (and assuming that none of the bequeathed assets are consumed by the longer-surviving spouse, the fees with be levied twice upon much of the same assets).

My understanding is that if assets are held jointly (for example a property or a bank account) they pass directly to the other joint owner without the need for probate (though still potentially subject to IHT).

My question is, if all their assets were to be moved into joint names, would there be a proper avoidance of probate fees on the first death?

However if even £100 was still held in an individual account then would it be then be case that probate would be needed and that the fees would be calculated on the value of the of the whole estate (not just the £100 in this example), so the exercise of moving to joint accounts would have been be pointless?

Grateful for any information.

[AGoodman]

The purpose of probate is to prove title to the assets so it is entirely voluntary unless you need it.

In the example you gave, the banks may well release the funds without probate but, if not, the executors could choose to abandon it rather than incur the costs and fees of a probate application.

Bear in mind that an IHT return may still be required. That obligation is separate to probate.

AG