Can a dead person's accounts be left open?

Cavalli

I've not worked out how to quickly use the quote facility on here so I'll have to go back and forth a little.

To the assurance nothing is a personal attack, don't worry.. my tone of facetiousness is not meant to sound defensive or upset. It's simply an instinctive way of responding to replies which have not paid attention to the question which has been asked or the details I've given.

I continue to be warned or informed I can't use her money as mine or transfer it to my accounts..sound advice whose repetition seems at best inattentive as I've explicitly stated I neither have ,would or could do anything of the kind in both posts. So any hint of sarcasm is purely mild exasperation and not directed at any individual.

"Inheritance tax isn't determined by whether the deceased and/or the heirs pay tax. It is determined by the size of the estate"

I didn't believe it was, its simply the clumsy way I composed the sentence. I should have said "we don't pay tax and we're talking thousands" etc, instead of the other way round. That's to say the lack of inheritance issues related to the latter fact not the former. I mentioned the non tax paying status to simply encompass the fact that like benefit fraud or money laundering there was no nefarious motive behind my principle query.

"surely, as you now have POA and manage her financial affairs, you know exactly what accounts she has, and whether they are joint or sole?"

All I see when I log into the account online is the account number and the amount in it.

I never said it was a joint account (that's to say the term was never applicable in my recollection and my name doesn't appear on statements) What I referred to was that when the various accounts were set up (on which more in a moment) because she's physically incapable of leaving the house I recall that with the TSB one as it then was (assuming its the same account) uniquely allowed somethng to be signed that allowed them to accept my signature when going into the bank. I know I'm being vague but its genuinely because its not an option that's been used in many years. I only mention it now as an additional detail in response to the person who suggested they might take a dim view that I accessed the account at all before telling that particular bank I have POA.

"why has she got an ISA if she doesn't pay tax? There does not seem an obvious benefit, unless she has the Major ISA at 4% AER (coming to and end in the next 6 months). Why is any of her money in an interest-free account in Lloyds? You know about the Lloyds Vantage accounts? And/or the Santander 123? And R85 forms?"

You'll have to slow down there! Bear in mind I'm only dealing with her money directly in the last few days.
Several accounts were set up many years ago following my father's death to deposit her build up of cash and any he'd left behind. Small amounts in a number of accounts. My sister in law opened them for her. I'm sure it all made perfect financial sense at the time. The exact type and number of accounts has changed more or less automatically as various banks and building societies were bought up by others..principally Santander. Beyond this pretty much nothing has been touched. The Lloyds account is the one into which such things as a small Ford widows pension, winter fuel etc goes and from which gas and electric bills are paid by direct debit. Because the number of bills coming out has reduced over time (for example I now pay the phone and water bills myself) the amount in it has slowly built up unnecessarily. Hence I've moved a portion of it into her cash ISA in Santander. As for the other accounts you mention, again I'd say bear in mind there is no long term here so I'm not planning to open anything new up.

There remains some confusion about my possession and use of the POA. I'll clarify that the sole reason for applying for it was that one of her accounts was blocked for lack of use. She could neither go into the bank to sort this out because she's disabled, nor deal with them on the phone because of the dementia. So I was obliged to obtain the Power in order to unblock it for her. This is only tangentially related to my dealings with her accounts online in that its caused me to look at them and ponder the question in my initial post. (the second motive is that one of her own sisters recently died and a surviving one warned me - unnecessarily it seems - of the need to sort her finances out before anything happened to my mum) I'm operating her accounts for her on the computer in the same way I might in the past have withdrawn cash for her from an ATM..that is with her permission and on her behalf.


I hope this has clarified as much as possible, though suspect each time I do it gives the false impressiion I'm continuing to seek advice. I'm not.

But thank you, yes, I get it. Register the POA with Lloyds and go through probate like a sane person when the time comes. Will do.

iris

If your Mother has a Lloyds current account why don't you just upgrade to a Vantage account that pays up to 3% interest on credit amounts from £3000 to £5000. This can easily be done online. Your Mother could have up to 3 of these account each with £5000 in. You would also need to fill in a R85 form so that she doesn't pay tax.


Everything remains the same in the account, you just need to pay in £1000 per month, but this can be done by transferring money from one account to another.


Perhaps read more about the Lloyds Vantage as below.


https://forums.moneysavingexpert.com/discussion/4104719


HTH

xylophone

Lasting Power of Attorney? See http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=154

"A property and affairs LPA covers decisions about your finances and property. If there comes a time when you can't manage your finances anymore, the attorney will do this for you. This can include paying your bills, collecting your income and benefits, or selling your house. However, if you wish to, you can restrict their powers, or place conditions on what they can do. It can only be used once it has been registered at the Office of the Public Guardian (OPG). The OPG is responsible for the registration of LPAs (for more information see the 'Office of the Public Guardian' section in this factsheet). It can then be used even while you have mental capacity to deal with these things yourself."