non partner joint accounts - pros and cons

interest_Ted

My daughter has suggested that I set up some joint accounts with her so that when she travels abroad, I can look after her finances. To be honest - the main reason is that if she were to get her ATM card stolen while in the Amazon jungle or somewhere, we can at least get a replacement without too much trouble. Also we could drip feed her ATM account, maximising interest in her savings accounts, while minimising exposure to risk if she were to get her card stolen or cloned. I am happy to do all this, but the idea has set me wondering.

Are there any tax implications of doing this ? For example what happens to any interest earned - is it split for tax purposes as 50/50 between us ? (I don't want to pay her tax !!!) Or is it down to us to decide proportions etc.

I read on another post that joint accounts can co-join the account holders credit ratings. Would she suddenly get a fantastic rating (i.e. like mine) or would mine be dragged down to her level (low due to her age and minimal exposure to credit applications etc) ? Or would they simply be linked or cross referenced ?

Any other pros and cons ???

TIA Ted

rjm2k1

She could just setup an internet account in her name and give you the login details etc. If you share a credit history, afaik, it's the bad one that affects the good one, not the other way round.

interest_Ted

Thanks rjm2k1 - I was initially going down that road for the drip feed. But the loss (if it were to happen) of the ATM card would be the problem. She could call me reverse charges from Timbuktoo, but not the bank. And banks simply will not discuss a party's bank account with another party - no matter who they are or what the circs. So the joint account seems a plausible 'disaster recovery' plan.
Ted

roswell

why not go down the credit card route i think nationwide do one with no international charges, This way if her card was cloned or anything while traveling you could claim back through the creditcard a lot quicker than a bank would pay you back.