Power of Attorney - Who 'Owns' Joint Savings?

sloughflint

The mere fact that they did not suggest for your mother and father to be the account holders is enough to send my alarm bells ringing.

Going by your recent post on the other thread,this supervisor doesn't sound particularly knowledgeable to me:mad:. You should NOT be an account holder-only an operator.

robnye

surely if your father is still around, the money should be both your father and mothers names..... otherwise it becomes a possible tax avoidance on the interest issue.....!

or just in your mothers name if its her money

Marg

I agree with the other posters - Don't do it!

My DH has money paid into our joint a/c but once it's in their all the relevant bodies consider its jointly owned for tax etc.

It may seem obvious to you to write explanatory letters to the bank but banks are so big & impersonal that there is no way that they will have the ability to deal with this as a special case, the letters will get lost in the system and you will forever have problems with it all - My DH & SIL have POA for his mum and the whole process with the bank was shambolic and theirs was a straight forward case!

Errata

I can't see any point in any letters being written. Why should the banks take any notice of them? Surely they have no legal standing otherwise those with joint accounts which are substantially overdrawn could write to a bank and say 'it's not my overdraft, it's his - chase him for your money and leave me alone'

Biggles

Fire_Fox wrote: »

The lady I spoke to at Tesco last time went and asked her supervisor, but seemed pretty knowledgeable herself. But obviously I am very worried by the suggestion that it may appear I am using the PoA wrongly.

Clearly neither of them were knowledgeable, though it wasn't their responsibility to decide who might own the money.

However, they really ought to have been able to advise you correctly how to operate an account under PoA for your parents, but so many banks' staff have problems in this area it's very worrying.

Fire_Fox

robnye wrote: »

surely if your father is still around, the money should be both your father and mothers names..... otherwise it becomes a possible tax avoidance on the interest issue.....!

or just in your mothers name if its her money

At present both my parents 'earn' (pensions) enough to pay tax on the interest. However, when my mother turns 65 I believe her personal allowance does increase and she will no longer need to pay tax. None of my family are badly enough off that if this money ended up in the wrong hands upon someone's death it would be a big issue. However, I can see that it would if it appears that something illegal has taken place.

Fire_Fox

Errata wrote: »

I can't see any point in any letters being written. Why should the banks take any notice of them? Surely they have no legal standing otherwise those with joint accounts which are substantially overdrawn could write to a bank and say 'it's not my overdraft, it's his - chase him for your money and leave me alone'

That's why I intended to send the letters with the initial cheque and signed forms. I had thought that the Tesco would take notice as they had advised that this is the usual course of action with a PoA.

I think it might be best if I speak with the tax office as they have been helpful in the past. I generally take note of the date and name of anyone official I speak to, so will have a record of the result.

Thanks again to all.

Biggles

Fire_Fox wrote: »

I had thought that the Tesco would take notice as they had advised that this is the usual course of action with a PoA.

That does seem unlikely as, at the end of the day, all the accounts set up by this Tesco employee would have their money in the names of people who weren't supposed to own it, which is potentially catastrophic. Get an account with a proper bank/building society that understands PoA accounts. Most of them do. Either Tesco don't, or the people you've spoken to at Tesco don't.

I think it might be best if I speak with the tax office as they have been helpful in the past. I generally take note of the date and name of anyone official I speak to, so will have a record of the result.

HMRC won't have any interest here, as your father is quite entitled to give you his share of the PO joint account should he actually wish to, and tax is not involved in the gift (tho, as mentioned, IHT may be at a later stage, but not now).

Fire_Fox

Sooo .... I have now spoken to Tesco again and have been both wrongly and rightly advised, apparently! The account should NOT have been opened in my name, as all you lovely people have pointed out, BUT the account will automatically be converted to the correct format as soon as they receive the PoA documents (with the deposit cheque in mum's name). I will be registered but there will be a "(PoA)" after my name and I will not be a full partner in the account.

So another big thanks to you all for pointing out what should have been obvious to me.
:beer:

Biggles

Sounds as though Tesco have finally given the right advice.

Check all your documentation carefully to make sure the account really does end up in your parents' names and not in yours.