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Joint Bank Account question

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Joint Bank Account question

Postby maxine » Sun 13 Apr 2014 07:06 GMT

I have been told that the Maltese laws regarding property on death are different from the UK in that half of the estate automatically goes to the children and the other half to the surviving partner.

This has implications with joint bank accounts insomuch as the account becomes frozen when one half dies causing major financial issues.

Does anyone have any info about this? We have set up a joint account with OR signatories - does this change anything?

I'll try and get to the bank on Monday to get their feedback but it seems worthy of discussion here.
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Postby gozomark » Sun 13 Apr 2014 07:17 GMT

AFAIK, yes, what you say is correct, although only applies to assets (incl bank accounts) in Malta
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Re: Joint Bank Account question

Postby gozomark » Sun 13 Apr 2014 07:20 GMT

maxine wrote:We have set up a joint account with OR signatories - does this change anything?

.


AFAIK, no, which is why Maltese I know have both joint and individual accounts. Foreigners often dont bother as they tend to have bank accounts overseas
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Re: Joint Bank Account question

Postby maxine » Sun 13 Apr 2014 14:06 GMT

AFAIK, no, which is why Maltese I know have both joint and individual accounts. Foreigners often dont bother as they tend to have bank accounts overseas


The only problem with that is that if you wish to be NON RESIDENT and NOT ORDINARILY RESIDENT in the UK for tax purposes then you can't maintain a UK bank account - you have to sever all ties.
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Postby gozomark » Sun 13 Apr 2014 14:13 GMT

I'm non resident and not ordinarily resident in the UK and haven't been for over 10 years and still maintain a UK bank account, with my registered address in Malta. Also you can open an account offshore if you are concerned with your residential status in the UK.
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Postby gozomark » Sun 13 Apr 2014 14:16 GMT

Ps you do not need to sever all ties, just enough of them. Last year one of my friends did a full report on the number of ties you can maintain and still be non resident, which I put in the premium boards. This was based on the latest guidance from the taxman in the uk
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Postby maxine » Sun 13 Apr 2014 17:19 GMT

Cool - thanks for that. Useful to know.
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Postby euphony » Tue 15 Apr 2014 08:35 GMT

So what happens if you have a joint account, no children and one of you dies?

As soon as I have sme spare money I'm going to join the premium board as I'm eager to know the up to date tax issues Mark has mentioned, as I'd like to maintain some kind of presence in the UK, even though we won't be living there :)
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Postby gozomark » Tue 15 Apr 2014 09:12 GMT

euphony wrote:So what happens if you have a joint account, no children and one of you dies?


if its a local account, then it will be frozen until probate is granted, that can take months (even years in extremis)
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Postby euphony » Tue 15 Apr 2014 09:25 GMT

I see, so it'd be better to have two single accounts instead in that respect so you can at least transfer money to your own account (from the UK) in a worst case scenario?
What a bizarre thing, I never thought something like that would likely cause us a problem in the future.
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Postby PeaCakes » Tue 15 Apr 2014 17:36 GMT

There is no probate in Malta. The issues with estates over here mostly relates to immovable property. As for bank accounts, yes they are
frozen but all that is needed is a notary to contact the bank's
estates/bereavement department, following necessary "searches"
with a certified copy of the will. The beneficiaries would then need to
present themselves to the bank and the funds would be released.
But there is potentially a problem in that if there are numerous
beneficiaries they must ALL agree jointly to have the funds
released. If one of them refuses the funds will likely sit there
and sit there and the others will not get their share.
Barmy I know. Why you can't go along and take your 'share' is
ridiculous.
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Postby gozomark » Tue 15 Apr 2014 17:51 GMT

thanks for clarifying :-)
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Re: Joint Bank Account question

Postby fatmanfilms » Thu 24 Apr 2014 11:07 GMT

maxine wrote:
AFAIK, no, which is why Maltese I know have both joint and individual accounts. Foreigners often dont bother as they tend to have bank accounts overseas



The only problem with that is that if you wish to be NON RESIDENT and NOT ORDINARILY RESIDENT in the UK for tax purposes then you can't maintain a UK bank account - you have to sever all ties.


Not correct at all & residency has never been based on having a bank account or not.

You might want to google 'Statutory Definition of UK residence' it's been law for aver a year now.
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