Opening a bank/savings account on behalf of someone else?

itm2

Does anyone know how/if it is possible to open a bank or savings account on behalf of someone else? The situation is that an elderly lady has been keeping a large stash of cash because she was worried about the collapse of banks, but has now been persuaded that it is a very bad idea to do this. She is not very mobile, and does not live close to a bank or building society, so I was wondering how/if it would be possible to open a bank or savings account in her name and deposit the cash for her?
She still has mental capacity, so would be able to sign any mandate required.

xylophone

She is not very mobile, and does not live close to a bank or building society,

But close enough for you to take her by car? Presumably she does have a bank account into which her pension is paid?

It might be as well if an appointment could be made for her at her bank so that the money could be taken in and deposited.

After that, it would be possible for a postal account to be set up - she could use cheques if she cannot manage the internet.

Would it be an idea for POA to be obtained as soon as possible? The Attorney can then set up accounts and can manage her financial affairs.

https://www.gov.uk/power-of-attorney/overview

http://www.moneysavingexpert.com/family/power-of-attorney

http://www.ageuk.org.uk/money-matters/legal-issues/powers-of-attorney/

itm2

Thanks for the POA suggestion. It's a little more extensive (and expensive!) an option than I was hoping for!

The other piece of the picture is that she doesn't want her husband to know anything about this (!!), so whisking her away to open a new account would be quite difficult!

Another option might be to open an account in my name, but on her behalf. Is that possible?? It's not ideal as I don't really want my name on the account where the money doesn't belong to me, but it would make the initial account opening simpler. If the account were not at her home address it was also help keep her secret from her husband.

The more I explain of this the more I'm having second thoughts about helping out!

PeacefulWaters

I helped my Grandmother out by keeping her cash in an account in my name.

From time to time she asked me to send her son (my uncle) money. It was a pleasure to help them both out. It was also used to pay the occasional bill for her.

Then she died. My uncle passed away unexpectedly soon after.

Then my sister accused me of stealing my Grandmother's money. I hadn't done so, but it has irreparably damaged our relationship. Trying to unwind what money had gone where was a nightmare (compounded by me having opened and closed multiple accounts in pursuit of the best interest rate).

I'd steer well clear. Especially given her desire to maintain secrecy within her marriage.

xylophone

so whisking her away to open a new account would be quite difficult!

There would be no reason why you shouldn't take her out for an afternoon drive/tea in town?

Another option might be to open an account in my name, but on her behalf.

I really wouldn't do this.

If the money goes in to an account in your name, in effect it becomes your money. What if you should be accused of inveigling her into giving it to you?

And when she dies - IHT implications?

And if she is becoming infirm, POA would be a good idea?

Are you actually related to this lady? If not, does she have any relations who could assist her?

itm2

Thanks for all the feedback. I am related to the lady, but not closely enough to take on POA.

Aside from the complications/suggestions already raised, does anyone know how feasible it is to actually open an account on behalf of someone else? e.g. would it be possible to verify her identity over the phone or via some other method that wouldn't involve her needing to go to the place in person?

Mojisola

Wouldn't an online account be the best way to go? You could run it for her but it could be in her name.

How will you handle it if she dies first and you have to tell her husband about the account?

itm2

Mojisola wrote: »

Wouldn't an online account be the best way to go? You could run it for her but it could be in her name.

Yes I was thinking about that. The issue there is that she would need to be aware that she would receive mail from the bank or building society from time to time (particularly when the account is opened). She may not want this if her husband tends to deal with the incoming mail!

alanq

People have been concentrating on what happens if an account is opened in the OP's name and the old lady dies first. What happens if the OP dies first/ becomes bankrupt/ needs to apply for means tested benefits/ divorces? The money in the in account would count as part of the OP's assets.

By hiding assets in cash, or under another name, the old lady could be trying to dishonestly obtain means tested benefits.

Why the secrecy from her husband? Are you sure that all or part of the cash pile does not belong to him?

itm2 wrote: »

I am related to the lady, but not closely enough to take on POA.

If the donor has mental capacity you do not have to be related in any way to be given power of attorney. On the other hand you could be very closely related and not wish to take on the responsibility particularly with the need for secrecy.

Mojisola

alanq wrote: »

People have been concentrating on what happens if the old lady dies first. What happens if the OP dies first/ becomes bankrupt/ needs to apply for means tested benefits/ divorces? The money in the ir account will be in their name and count as part of their assets.

By hiding assets in cash or under another name the old lady could be trying to dishonestly obtain means tested benefits.

Who has said it's a good idea to put the money in the OP's name?

Mojisola

itm2 wrote: »

Yes I was thinking about that. The issue there is that she would need to be aware that she would receive mail from the bank or building society from time to time (particularly when the account is opened). She may not want this if her husband tends to deal with the incoming mail!

This would apply to any account, not just online ones.