Stand-out Q – joint GIAs


WED, 07 DEC 2016

Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.

My client is widowed with two children. He and his new partner want to set up a joint General Investment Account (GIA), investing money which came from the sale of my client’s house. My client’s will states that he would like his estate held in trust for the benefit of his partner and on her death pass to his children. Will having the joint GIA cause any problems?

It could. On the client’s death the assets held in the GIA would automatically pass to his partner and not pass to the trust created in his will. The only way the joint tenancy could be severed after his death is by deed of variation, but that would rely on his partner’s consent, which she may not be willing to give.

There are a number of reasons why Joint GIAs could be unfavourable to high net worth couples. Read the full Tech Talk on this here

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