Power of Attorney Bank Account - Don't assume it's OK

Be_Happy

Just a quick word of warning after the problems I've encountered.

My mother had POA for my disabled sister. When Mum died several months ago my sister's bank account - titled 'Mum's name' POA for 'Sister's name' was closed as part of Mum's estate by the bank. This was eventually sorted out and we just assumed it was a careless error.

When I took over POA for sister and opened new current account for her with another bank this was set up as a Power of Attorney account by the bank and the account was titled 'My name' POA for 'Sister's name'. Everything has been running well since then until this week.

After encountering problems opening a new Cash Isa under POA for sister the bank discovered that the current account has been wrongly set up and is not accurate. Although the title shows it to be a POA account, the young bank clerk pointed out that it could be 'in my name as POA for Spiderman', but this was only a title given by the bank it had no legal meaning. I had set up the account and signed, the bank had recorded me as the registered holder and if my sister or I died this money would be part of my estate. I have had to fill in new POA forms showing the account as belonging to my sister with my POA recorded as a note on it.

This sounds exactly the same as the problem encountered when Mum died, with a different bank, so it could be a common error. Even though both Mum and I had the accounts set up by bank staff.

localhero

The banks really need to get to grips with powers of attorney.

It really is a lottery whether the particular staff member that you deal with at any given bank knows their stuff with regard to powers of attorney.

loulou41

I am confused, We have power of attorney for our son's bank account. This was set up only as he used to travel a lot and I can query his account if necessary. He has his own cheque book and cards. We would like to think if anything happen to one of us, this is in his money and should not be part of our estate. Reading your post, I wonder whether I should query this as this is his account and his money. His bank statements are addressed in his name saying POA Mr & Mrs, yours says your name, POA your sister's name. It seems the account is in your name, not your sister. Does this make sense, I am getting confused now?

Biggles

My mother's cheque book read 'Mr Biggles, POA for Mrs Biggles' but Lloyds were never in any doubt as to whose account it was and, when she died this year, I had (correctly) to produce her death certificate followed by probate to be able to deal with it. This applied equally to all the banks I had opened savings accounts with in her name.

I agree with Localhero, the knowledge of the average bank staff member on this subject is minimal and I found it was important that I knew what I was doing and to explain it to them when necessary.

pollypenny

In Loulou's case surely it would be simpler to just be a signatory on your son's account. I was so for my father when he was in a residential home and I managed the fees etc.

SD lives in the USA, but maintains his HSBC account to pay his professional fees in the UK, so DH and I a signatories, to check that he doesn't go overdrawn.

Be_Happy

Thanks for comments. With both banks the account title has been my name POA for sister's name, but as the bank clerk explained this meant nothing. What mattered was who the bank had registered as the holder of the account.

This problem has been as nothing compared to the problems involved in opening sister's cash ISA. Too long to go into, but involved bank transferring money into wrong ISA and the problems involved in getting it back out again without affecting annual ISA allowance.

In all this the various clerks setting up the accounts had came across difficulties and called in their senior (sometimes 2 seniors) for advice. So there really seems to be a problem with staff POA training when it's not just one clerk involved.

dzug1

Having your own name on the bank account when you are an attorney is fraught with difficulties and potential for misunderstanding. It makes it look like a joint account - when it should be far from it - and proving otherwise if someone (eg HMRC) queries it may not be easy.

The account should remain (or be opened) in the name of the donor only with the Attorney being an authorised signatory. S/he should add the words 'as Attorney for' or similar when signing.

But I do agree that the average bank clerk doesn't have much of a clue about attorneyship. Perhaps not surprising as in a small branch it's scarcely a daily or even weekly event that they see one. They do normally - in the end, sometimes with Head Office assistance - get it right though.

colchesterguide

This is similar to a problem my mother-in-law has at the moment. My father-in-law has dementia and she has PofA for his affairs but the bank (Halifax) tell her that PofA cannot be used to transfer his ISA into her account or close it! They say they need to speak to him in person - which is not possible as he's in a secure care unit and wouldn't know what they were taking about anyway. So does anyone know how she gets round this impasse?

dzug1

colchesterguide wrote: »

This is similar to a problem my mother-in-law has at the moment. My father-in-law has dementia and she has PofA for his affairs but the bank (Halifax) tell her that PofA cannot be used to transfer his ISA into her account or close it! They say they need to speak to him in person - which is not possible as he's in a secure care unit and wouldn't know what they were taking about anyway. So does anyone know how she gets round this impasse?

They are right that the ISA cannot be transferred to someone else - it can only be closed. That's nothing to do with Power of Attorney - it's the law. And I can understand them being a little iffy about closing it and transferring the proceeds to someone else's account. Shouldn't be totally impossible though.

But closing it and putting the proceeds into another of FiL's accounts using the PoA should not be the slightest problem.

Escalate it at Halifax until you find someone who understands what they are doing.