Leaving no will...how bad could it be?

CLAPTON

Savvy_Sue wrote: »

I'm not talking about what happens after death: I'm talking about possible problems before death.

If the only account is a joint account, and FIL cannot operate it, and the bank realises this, then it is possible for them to 'freeze' the joint account.

under what circumstances?

Savvy_Sue

CLAPTON wrote: »

under what circumstances?

under the circumstances I described!

Joint a/c, one person is incapacitated but still alive, other goes to bank and says "there's a problem, other half can no longer sign cheques / make decisions etc", bank responds by freezing the joint account!

I'm not saying it happens often. I'm not saying it should happen ever. But either it has happened, or other posters have invented stories describing where it HAS happened.

Old_Git

there are two types off "joint accounts " .for most it will be a full joint account but some just have a second person as a signatory ,that can sign cheques and withdraw cash but it is not their account .
The second type should be avoided .

tyllwyd

Savvy_Sue wrote: »

under the circumstances I described!

Joint a/c, one person is incapacitated but still alive, other goes to bank and says "there's a problem, other half can no longer sign cheques / make decisions etc", bank responds by freezing the joint account!

I'm not saying it happens often. I'm not saying it should happen ever. But either it has happened, or other posters have invented stories describing where it HAS happened.

We've been looking into setting up a lasting power of attorney for my MIL and my understanding is that SS is right - I've seen advice saying that setting up a joint account isn't enough, because if one of the joint account holders loses capacity, that can cause problems. Ideally, the OP's FIL should set up a lasting power of attorney for finance and property while he is still well enough to do so, but if he doesn't want to hear about a will, then he is not likely to want to do that. So I think it would be very sensible for the OP's MIL to set up her own bank account and arrange for her pension to be paid into that rather than the joint account.

Mojisola

I've heard about the problems with joint accounts as described by Savvy_Sue. I think it was a BBC Moneybox programme a few years ago. We filled in Power of Attorney forms after listening to it.

Shamac - There's nothing to stop your MIL opening another account now in her name and transferring some of the joint money into it so that she knows she can get at it when the time comes.

dzug1

Savvy_Sue wrote: »

under the circumstances I described!

Joint a/c, one person is incapacitated but still alive, other goes to bank and says "there's a problem, other half can no longer sign cheques / make decisions etc", bank responds by freezing the joint account!

I'm not saying it happens often. I'm not saying it should happen ever. But either it has happened, or other posters have invented stories describing where it HAS happened.

Yes but that's the bank screwing up, surely?

Having more than one account is still the wisest thing to do.

shamac

Thanks everyone. Power of attorney, you have to be kidding-will NEVER happen to him:mad:. Anyhoo, sounds like a little account (that he knows nothing about!;)) with a couple of months living expenses in for her would be a good idea, luckily SHE will face facts!

CLAPTON

Savvy_Sue wrote: »

under the circumstances I described!

Joint a/c, one person is incapacitated but still alive, other goes to bank and says "there's a problem, other half can no longer sign cheques / make decisions etc", bank responds by freezing the joint account!

I'm not saying it happens often. I'm not saying it should happen ever. But either it has happened, or other posters have invented stories describing where it HAS happened.

in the sense that banks are pretty useless then more than one a/c is always a sensible precaution which is why we have two joint bank a/cs, one sole each plus about 10 credit cards.
in times of stress and emergency I hope at least one provides money

Mojisola

dzug1 wrote: »

Yes but that's the bank screwing up, surely?

The bank in the programme I heard claimed that they had, legally, a duty of care to the husband in a coma and were freezing the account to protect his interests.

John_Pierpoint

Old_Git wrote: »

there are two types off "joint accounts " .for most it will be a full joint account but some just have a second person as a signatory ,that can sign cheques and withdraw cash but it is not their account .
The second type should be avoided .

Being an "authorised signatory" came in very useful when my mother had her stroke.
I had power of attorney/enduring power of attorney but using it caused all sorts of misunderstandings with financial organisations.
Much easier to just carry on signing cheques.

OK I could have been a crook, but if my mother could not trust her son, who could she trust.