@AGoodman and @Maths Thank you again for your replies.
You've raised a couple of points that I've done a bit more investigation on.
o Maths points about the distinction between the legal owner of the monies and the beneficial owner. Joint bank accounts in the UK are constructed under joint tenancy agreements between the account holders. This is a very powerful legal term and is generally buried in the terms and conditions of the bank account itself. Why is it powerful ? Because rather than being an agreement between the account holders and the bank, it's actually an agreement between the account holders themselves ! Furthermore, it would seem to have far reaching consequences should one of them die.
There's a piece of research done by a person at Bristol University [see link below] on a similar situation in the Bahamas where the judge overruled the perceived intention of the parties and went directly on the basis of the definition of joint tenancy as a point of law. It would appear to imply that irrespective of the intention of the parties, legal AND beneficial ownership of the funds in a joint bank account transfers under survivorship.
Given the above, on what basis could a claim be made by the deceased's estate against the sister for return of the funds ?
https://research-information.bris.ac.uk/ws/portalfiles/portal/161869036/Whitlock_note.pdf
o AGoodman, what you've said here appears to make logical sense but [given the above] is this situation not consider a gift from the deceased to her sister... albeit an unintentional one ? If that's the case, is it not considered a Failed PET in which case the estate would not be able to recover the IHT paid ? If it's not and the IHT ought to be reimbursed by the sister, then unfortunately it will be necessary to bring a legal claim against her to recover the funds. She is forthright unwilling to co-operate. I'm guessing it will need to be brought in the County Court or High Court [if it's the principal as well as the IHT].
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