Joint Account IHT Form Completion iht404

[caffe]

A father had put his daughters name on a joint on savings account in 2010, interest income payments from this account were directly paid into the fathers current account and tax paid by father only on income. Upon death would 100% of the savings be included in estate or 50%?
Bank account changed in 2015, IHT404 form asks for % contribution by account holder, is this the original investment in 2010 or 2015 that needs to be recorded?

[AGoodman]

Likely 100% on the basis she was only an account holder for practicality but you really need to ask daughter/family why she was an account holder.

If she was a joint beneficial owner then she should have been declaring half the income (unless it would be covered by allowances etc).

Not sure I understand the second question - it means who was the source of the money in the account at death. Sounds as though it all originated from father.

[AGoodman]

And actually, if she was just on the account for practicality rather than as a true beneficial joint owner, I would record it as his account , rather than a joint asset.

[pawncob]

If the account (half) was gifted to the daughter in 2010 then a ppn would be exempt depending upon date of death.

[caffe]

Daughter was gifted the money but father has always received, declared and paid tax on all of interest (income) since 2010, assume this will be viewed by HMRC as father having sole benefit from asset and therefore 100% owned?

[AGoodman]

Yes, him receiving all the income is a textbook reservation of benefit.

If you treat the account as beneficially 100% his then you don't need to consider the reservation point (or forms!).

[maths]

What was father trying g to achieve?

Nothing is achieved by adding daughter's name and then father declaring all income etc on his Tax Return.

[AGoodman]

It's not unheard of. It could be an (unwise) solution to incapacity and could (legitimately) avoid the need for probate if there were no other assets that needed it.

[caffe]

Father's intention was to protect all assets from second wife (previous deceased) in case of divorce and wants daughter to inherit upon death. agreed it's a bit of a pigs ear!!

[maths]

Yes !

As father declared everything on his return then more straight forward for his estate to include the monies as to 100%.

Don't want to get involved with HMRC enquiries as to why daughter didn't declare. anything on her return.