Bank Account beneficiary vs. Will provision

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ali101

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My father and stepmother married following the death of their first spouses. Each have adult children from their first marriages.

After marrying they opened joint-named bank accounts and updated any sole-named bank accounts to specify the other spouse as the beneficiary. They also made individual Wills that are identically structured and state that they "bequeath their entire estate both real and personal to their adult children from their first marriage".

If one of them dies who inherits the money in the bank accounts?
 
The other spouse, if it is a joint account owns the full sum of money on the death of one of the owners.

Perhaps the will states the assets they want to leave to their children? Houses, goods etc. It is probably unusual that they do not leave everything to the surviving spouse who is usually entitled to a large chunk of the estate on the death of a spouse. I hope they were advised by a solicitor when they drew up the wills who would have told them about potential pitfalls.

So for example if the house they live in now was owned by your Dad and he died, is his current wife supposed to find a new place to live so you and your siblings can sell the house? What if she was elderly and vulnerable by the time that happened?
 
ali101 said:
and updated any sole-named bank accounts to specify the other spouse as the beneficiary.
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Hi ali101. How was this done?

As far as I know, whilst it's easy enough to add a joint signatory onto an existing sole bank account, adding a new beneficiary (by adding a name to a sole account with the result that it becomes a joint account) is not possible (well, in AIB at any rate).
 
it is possible that Joint accounts have two forms

1. Tenants in common - half the balance goes to decease's estate
2. Joint tenant's - whole balance transfers to survivor directly

That would depend on the bank.

Of course, it could happen that both owners die at the same time - so beware !

Joint signatory does not signify ownership - company/club accounts often have joint signatories with any of the signatories actually owning the account
 
Johnno75 said:
As far as I know, whilst it's easy enough to add a joint signatory onto an existing sole bank account, adding a new beneficiary (by adding a name to a sole account with the result that it becomes a joint account) is not possible (well, in AIB at any rate).
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Unless this is something new or particular to AIB it was always easy enough add on a second person to make an account a joint account, get id and print off 'add customer to account' form. Specifying them a beneficiary is not something I have come across or terminology used in just adding a name to an account. Adding a named signatory on a sole account is different and would give no ownership of the funds in the account.

Most joint accounts in banks are converted to sole name on death depending on amount in account and whether will or not, different procedures for different scenarios.
 
Monbretia said:
Unless this is something new or particular to AIB it was always easy enough add on a second person to make an account a joint account, get id and print off 'add customer to account' form. Specifying them a beneficiary is not something I have come across or terminology used in just adding a name to an account. Adding a named signatory on a sole account is different and would give no ownership of the funds in the account.

Most joint accounts in banks are converted to sole name on death depending on amount in account and whether will or not, different procedures for different scenarios.
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Maybe it’s a new thing but I’m fairly sure you can’t just add a name to an existing account to make it a joint account with AIB.
 
jpd said:
it is possible that Joint accounts have two forms

1. Tenants in common - half the balance goes to decease's estate
2. Joint tenant's - whole balance transfers to survivor directly
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Eh, no. Bank accounts don't have tenants - of any description.
ali101 said:
updated any sole-named bank accounts to specify the other spouse as the beneficiary.
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That sounds like a joint account, with a single signatory.

Monies standing to the credit of a joint account pass by survivorship. Otherwise, they form part of the deceased's estate.
 
Sarenco said:
Eh, no. Bank accounts don't have tenants - of any description.
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That’s what I thought. I hadn’t ever heard of the doctrines of joint tenancies/tenancies in common ever being used in a banking context.
 
Monbretia said:
Unless this is something new or particular to AIB it was always easy enough add on a second person to make an account a joint account
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Ulsterbank allow it.
AIB and BoI don't. Not sure about other banks.

The 'nomination' of sole accounts to a specific beneficiary is usually only done for Credit Unions and An Post savings. I understand legislation allows for both but only up to certain limits.
 
You can't leave your spouse out of your will - they have a legal right to half of your estate if you don't have children and a third of your estate if you do.

If the money in the accounts falls outside the estate then it would not be counted towards legal right share.
 
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