Transfer of securities and bank account funds

Transfer of securities and bank account funds


Probate is a process which gathers together the deceased’s assets, such as money, property and possessions, so that these can be valued and the estate assessed for any taxes that may be due.


However, some securities and bank account funds may not have to go through the probate process, according to how they have been left – or according to an arrangement made prior to death.


Inheritance Tax is the tax most people are aware of, but some assets – such as property – may also attract Capital Gains Tax, unless a will has been written to minimise tax liability.


Bank accounts funds


Monies held in a bank account will usually be added to the estate, unless there is a transfer on death (TOD) arrangement in place – sometimes also called “either or survivor”.


TOD can apply to all types of accounts such as current, savings or investment accounts – and in these cases, the funds would pass automatically to the survivor without passing through the estate.


However, with joint accounts, the decedent’s share of any money in the account would be included in the estate.


Pensions and annuities


Spouses and partners frequently inherit a pension after the death of their husband or wife – and may also inherit annuities if there is a guarantee attached to the annuity, which enables it to be passed to a spouse or partner.


In some cases this may be for a specified period of time only.


Pensions and annuities which are inherited do not go through the probate process – and it is usual to contact the provider directly to arrange transfer.


However, with pensions that offer a lump sum payment on death, this sum would be included in the estate for probate.




Trusts are a very tax efficient way of minimising tax on estates, as assets held in a trust are not included for the purposes of probate. Trustees will manage the assets and/or distribute them according to the will.




Shares pass to beneficiaries without Inheritance Tax and Capital Gains Tax, unless the shares increase in value between the decedent’s death and probate being granted and the beneficiary decides to sell them.


Beneficiaries who inherit money and shares may have to pay Inheritance Tax in cases where the estate fails to pay any tax due.


Once monies and securities have been distributed under the will, any income or profit derived from the asset would be subject to Income Tax in the normal way.


The administration of an estate where there are numerous beneficiaries and bank accounts, funds and securities to be distributed requires expert legal advice to ensure that the estate is valued and distributed correctly – and any taxes due are paid.


Duncan Lewis Wills and Probate Solicitors – Transfer of Securities and Bank Account Funds


Duncan Lewis wills and probate solicitors can advise on the transfer of assets either during the will writing process or as a professional executor to a will, or in cases of intestacy, where there is no will.


There are Duncan Lewis offices nationwide – and Duncan Lewis wills and probate solicitors offer competitively-priced fixed fees for wills and probate services, with hourly rates for contentious probate matters.


For expert legal advice onWills and Probate and Transfer of Securities and Bank Account Funds, call Duncan Lewis Wills and Probate Solicitors in confidence on 0333 772 0409.