Bank account for elderly mother - restricting withdrawals?

Austin_Allegro

Hi all

My elderly mother has had some problems with cowboy builders coercing/deceiving her into withdrawing large sums of money from her bank account.

The police are involved with the case and we hope that we have seen off the crooks for the time being.

She is mentally ok as far as we can tell as she does not have problems in other areas, but we are concerned that threats/coercion/deception will be used again to get cash from her.

We would like to set up a current account that requires a joint signature for cash withdrawals so that I have to be present, but which would still let her write cheques, use a cashcard etc, because we don't think that criminal elements will be interested in having cheques or card payments.

Is this possible or would everything have to be done jointly?

RayWolfe

My experience would suggest that it's either one signature or two, not a combination. Even if you could, leaving her with a cash card could lead to further problems. Maybe you could run her banking for her and just leave her with a cash card that has a low daily limit.
A worrying problem, I wish I could help further.

DesG

A horrible situation.

My only suggestion is to open up a second account that your Mum can use, and keep it topped up with enough cash for her weekly needs with a standing order.

Then have her main account as joint signatures to prevent large withdrawals without you knowing.

Cheers, Des.

Extant

Have you considered getting a power of attorney drawn up?

If she's having problems with her banking, it might extend to other areas - a power of attorney would help you to take control as and when you need to.

wrangler360

Bank accoubts are either to sign. However you can have savings accounts that need 2 sigs to withdraw. Then open a cashcard account with a low limit for her day to day livinf

Scousebird_2

BarclaysManager wrote: »

Have you considered getting a power of attorney drawn up?

If she's having problems with her banking, it might extend to other areas - a power of attorney would help you to take control as and when you need to.

For once I agree with Barclays Manager (I will hold my hands up)!

I would suggest contacting your local Family Court/Court Of Protection-to file for a Power Of Attorney due to mental incapacitation.

Going ''third party'' will not have any effect and if you did set up ''two to sign'' on the account then it is unlikely that a debit card would remain due to both parties having to give authority for withdrawrals. POA is your best option.

jonesMUFCforever

A bank cannot issue a card for a 'both to sign' account mandate.
I agree that a Power of Attorney may be the way forward but it is very expensive process these days.

PBA

I disagree, clearly a POA (at this point) on grounds of mental incapacitation isn't appropriate as this would stop your mother from being able to access her account at all.

You could point out to your mother that online savings accounts pay better rates than leaving her money in the bank, and that you'd be happy to do the online bit for her. Then move the bulk of her money into an account that can only be accessed online. You'd keep the online access details (technically against the bank's T&Cs) so you could keep an eye on the accounts and move money over when it's needed, so she wouldn't be able to spend large sums without your knowledge.

Uncertain

One option would be to set up a basic bank account (which can't be overdrawn) for your mother to use on a day to day basis for her minor spending. You then keep all the paperwork (cheque book / card / pay in book) for her main account at your house. Set up a standing order, say every two weeks, to pay just enough to the basic account for her day to day needs. When she needs to pay a bigger bill you do the paperwork and give her the cheque to sign. That way she stays in control of her money but you can filter out any nastties. Also, you are then staying within the bank's rules and can't be accused of spending her money without her knowing.

Mikeyorks

Post #8 is the practical answer. A mechanism I employed last year for my Mother (for different reasons). Enabled me to have money 'near to hand' underpinning her current account and also to tuck some away in longer term accounts. All discussed with her ..... but she only had access to the current account.

Important to protect your back by ensuring paper statements for the current account continue to her. And that there aren't any bill payments / SOs in your favour from any of the underlying accounts. If she owes you money ... do it via cheque then it's all transparent.

Biggles

It's all very tricky.

A PoA isn't the answer, as (the way most (all?) banks operate them) it wouldn't be flexible enough to do what you want, however you draw it up.

The separate online savings account is certainly not the answer, as you would be 'pretending' to be your mother and thus contravening the bank's T&Cs. And there would certainly be problems if there were any other potential beneficiaries of her estate.

I would suggest, first of all, a meeting with the bank manager. He should understand the problems and may have a solution.