Joint or Single Accounts for Grandma's Savings

shortcrust

My 92 year old grandma has recently sold her house and I'm managing her money for her. I'm opening various accounts - it's all sitting in a single current account at the mo - and want to know if I'm doing anything wrong (ethnically, legally, financially) by opening joint accounts with both our names rather than just her name. She doesn't want anything to do with her finances now so I need to be able to manage things without bothering her. I have power of attorney, but thought joint accounts might make things easier.

Archi_Bald

There are pros and cons for doing what you are doing. Lots of websites out there discussing the pros and cons.

One obvious issue could be inheritance matters. If you aren't the sole heir, there could be disagreements and mistrust down the road. Also, if you have POA, you must not mix up your grandma's interests with your own.

May be pop into your local CAB and ask for some tailored guidance?

xylophone

No - you should use your POA to open accounts in your grandmother's name.

Be prepared to have to produce the original or copies certified by a solicitor ( and a very precise wording is required ) and each page of the document must be signed and certified.

You will also need to produce evidence of identity for you and your grandmother.

Is this an LPA or an EPA - be careful that you fulfil the requirements.

http://www.lawdonut.co.uk/law/personal-law/powers-of-attorney/being-an-attorney-under-a-lasting-power-of-attorney

http://www.justice.gov.uk/downloads/forms/opg/epa101.pdf

shortcrust

Thanks both for the helpful replies. It's an LPA and I discussed it all carefully with the solicitor when we set it up so it should be ok. This is probably a daft question, but does my grandma's ID have to show her new address before I can use it to open accounts for her?

xylophone

my grandma's ID have to show her new address before I can use it to open accounts for her?

You should be able to use evidence of her old address together with evidence of the new - for example, you might be able to show the utility closing statement or a letter from the DWP acknowledging that she has moved house etc - a relative with LPA for his very elderly relative has recently had to do this.

CLAPTON

shortcrust wrote: »

My 92 year old grandma has recently sold her house and I'm managing her money for her. I'm opening various accounts - it's all sitting in a single current account at the mo - and want to know if I'm doing anything wrong (ethnically, legally, financially) by opening joint accounts with both our names rather than just her name. She doesn't want anything to do with her finances now so I need to be able to manage things without bothering her. I have power of attorney, but thought joint accounts might make things easier.

there is no reason why you shouldn't open joint accounts as it certainly makes life a lot easier

who are the beneficiaries of her estate?
it might be best to discuss your plans with them so every thing is seen above board

xylophone

there is no reason why you shouldn't open joint accounts as it certainly makes life a lot easier

When grandma dies it can make life a lot harder.

https://www.gov.uk/wills-probate-inheritance/joint-property-and-bank-accounts

http://www.bllaw.co.uk/services_for_individuals/wills,_probate_and_tax/news_and_updates/joint_accounts.aspx

http://www.boodlehatfield.com/the-firm/articles/joint-accounts-whose-money-is-it.aspx

There is no doubt that this money belongs to grandma and no evidence that she wishes to gift half to the grandson.

Given the complications that might ensue, the grandson should simply open accounts for his grandmother in her sole name which he can operate as her attorney.

http://www.barclays.co.uk/Bereavement/SortingoutBarclaysaccounts/P1242633762759
[B"]If you were a joint account holder with the deceased, you will automatically take over the account as the sole account holder. In order to make this change, all we need is the death certificate."[/B]

Barclays position is common to that of other account providers.

I recall a long running legal dispute covered on another forum where a mother had left a will dividing her assets between her children but where all the cash had been put into a joint account with her son a few years before she died.....

Archi_Bald

I agree, unless the POA holder is the only heir, joint accounts could be asking for trouble. Even if they are, there could still be unnecessary complications.

Mojisola

CLAPTON wrote: »

there is no reason why you shouldn't open joint accounts

Yes, there are! As her POA, you have to manage her money in her best interests. Putting it in a joint account so that it has become your money as well as hers is not good practice. It leaves the attorney open to allegations of mismanagement and worse.

When I registered the POA I had for Dad, the bank changed his old account into an attorney account - it had "my name as POA for Dad's name" on the cheques and account paperwork.