What happens to joint bank accounts after death?
In most cases a joint bank account passes automatically to the surviving account holder by the right of survivorship. The bank removes the deceased's name and the survivor keeps full access to the balance. The money does not pass under the will and usually needs no probate. It may, however, still count towards the deceased's estate for inheritance tax, depending on who contributed the funds.
Detailed explanation
Joint bank accounts are normally held as "joint tenants," which means the same survivorship principle that applies to jointly owned property applies to the cash. When one holder dies, their interest passes automatically to the survivor, who continues to operate the account as before. To update the account, the bank usually just needs a copy of the death certificate.
Because the balance passes outside the will, two things follow: the deceased cannot leave "their share" of the account to someone else by will, and probate is generally not required to release the money. This makes joint accounts a simple way for couples to ensure the survivor keeps immediate access to funds for living costs and funeral expenses.
Tax is the wrinkle. For inheritance tax, HMRC looks at the substance, not just the label. If the deceased provided most or all of the money, HMRC may treat a corresponding share of the balance as part of their estate, even though it passed to the survivor automatically. Where the joint holders are spouses or civil partners, transfers between them are normally exempt, so this is mainly an issue for accounts held jointly with, say, an adult child.
A practical caution: adding an adult child to your account "for convenience" can have unintended effects — it may expose the funds to the child's creditors or divorce, and can create the tax issues above. It is rarely a substitute for proper estate planning.
Margaret and her husband hold a joint current account. When Margaret dies, her husband shows the bank her death certificate and the account simply continues in his name — no probate, no delay. Because they were married, the transfer is exempt from inheritance tax. Had the account instead been held jointly with her son, HMRC might have treated part of the balance as Margaret's estate for tax.
Sources
- HMRC Inheritance Tax Manual — joint accounts (IHTM15042 onwards)
- GOV.UK — What to do when someone dies: bank accounts
- MoneyHelper — Dealing with a joint bank account after a death
- Reviewed by
- ClearLegacy editorial team
- Last reviewed
- June 2026
- Next review
- December 2026
- Jurisdiction
- England & Wales
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