Revenue Note for Guidance

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Revenue Note for Guidance

109 Payment of money standing in names of 2 or more persons

Summary

This section provides that where a sum of money exceeding €50,000 is lodged or deposited with a banker (as defined) in the joint names of 2 or more persons, the banker cannot, on the death of one of those persons, pay that money or any part of it to the survivor or survivors without first obtaining from the Revenue Commissioners either a certificate confirming that there is no outstanding charge to tax, or a consent in writing to the effect that the money can be paid to the survivor or survivors.

Details

(1) banker”, “pay” and “current account” are self-explanatory.

(2) Where the amount lodged or deposited (otherwise than on a current account) in a bank or building society, etc. is in excess of €50,000, the banker must not pay that money or any part of that money, on the death of a joint account holder, to the survivor or survivors without a certificate from the Revenue Commissioners certifying that there is no outstanding claim for inheritance tax on the money or any part of that money, or a consent in writing from the Revenue Commissioners allowing the payment of the money pending the ascertainment and discharge of tax.

(3) Tax is deemed to become due and payable on the date of the relevant death notwithstanding anything contained in the Act. This provision is necessary for any case where there may be a time lapse between the date of death and the valuation date.

(4) Any banker contravening the provisions of the section will be subject to a penalty of €4,000.

(5) In any case where a penalty is demanded, the onus of proof that a certificate or consent was issued under subsection (2) will lie with the banker.

(6) Relief is provided for a banker, acting in good faith, on the belief that none of the joint account holders was dead. Proof of the banker’s good faith will be a good defence in an action for recovery of the penalty.

(7) The section does not apply where the sum of money referred to in subsection (2) is lodged or deposited in the joint names of 2 persons, one of whom dies on or after the date of the passing of the Act (i.e. on or after 21 February 2003) and is at the time of that person’s death the spouse/civil partner of the deceased person.

Relevant Date: Finance Act 2015