If a person makes a gift jointly with his spouse and then dies is it a chargable transfer or a spouse exempt gift. If it is a spouse exempt gift is the full amount therefore a PET on the spouse.
Thanks in anticpation.
Pete T
Replies (5)
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I think that the fact that it came from.....
... a joint account is prima facie evidence that it was a joint gift. There would need to be pretty clear evidence to displace this asssumption.
If it is indeed a joint gift then there is no rule of the sort you are seeking to help you. The half of the gift relating to the deceased will be a failed PET and will need to be taken into account in the estate.
Not joint
As he says, you need evidence. The fact that it came from a joint account doesn't make it a joint gift.
facts
Does the evidence confirm that the gift really was 50:50 from each joint account holder?
What other evidence might you be able to find that the gift was onlyb from one or other of the spouses even though the payment came from a joint account?
Gift from joint bank account.
The gift was out of the joint bank account. The joint bank account passes automatically on death to the spouse and is therefore spouse exempt. I was hoping that there is some rule to say that the gift is also passes automatically as being from the surviving spouse and therefore continues to be a PET from the surviving spouse, instead of presumably half the gift becomes a chargeable transfer on the first death.
How do you make a gift jointly?
A gift (not to a spouse) cannot be a PET if the donor is dead, so it becomes a (possibly) chargeable transfer.